A number of exemptions apply when distributing all or part of an estate, meaning there may be little or no inheritance tax to pay. These include:
Gifts with a value of £3,000 per year (the annual exemption), Gifts to spouses, during lifetime and after death (the inheritance tax spouse exemption), Primary, permanent residences of up to £1m in value (from 2017); Assets belonging to someone who dies in armed forces, humanitarian or emergency service, Business assets (inheritance tax business relief), Agricultural property (agricultural relief), Woodland timber (woodland relief) and Assets with heritage / cultural interest may be exempt
Behind these reliefs and exemptions are detailed rules and clauses that require thorough analysis in the context of other decisions being taken about a ‘person’s estate’.
There are also many specific investments that utilise these exemptions, including:
Venture Capital Trusts, Enterprise Investment Schemes, Seed Enterprise Investment Schemes and Inheritance Tax Investment Schemes.
Lycetts assesses the value of exemptions for this wider context and on a case by case basis, to arrive at the most appropriate option for each individual client.
Wondering if you can benefit from inheritance tax relief and exemptions? Get in touch today to discuss your requirements with one of our professional advisers.