Inheritance Tax Advisors
- Expert team
- 5-star service
- Providing inheritance tax planning advice across the country and locally in Dorset
Inheritance Tax (IHT) Planning Advice
IHT is mainly charged on death. Your total wealth plus all gifts made in the previous seven years is taxable. This total is reduced by a nil rate band (NRB). If your spouse has predeceased you may have their NRB as well. Depending on the size of your estate, and the terms of your will, your estate may also benefit from an extra residence nil rate band.
You do not have to be an Entrepreneur to use Business Property Relief (BPR). Portfolios of AIM shares can qualify for BPR and so escape IHT – once held for two years. Independent financial advice is essential to make sure this is the right decision for you.
How Our Inheritance Tax Advisors Can Help
Ward Goodman are experts in providing professional advice for Inheritance Tax (IHT) in those difficult times to make sure you as the client can focus on your loved ones.
Gift Giving
Lifetime gifting saves significant amounts of IHT, but some lifetime gifts trigger immediate IHT charges
Potentially Exempt Transfers (PET)
Many gifts of cash to individuals are Potentially Exempt Transfers (PET). These only count for IHT if you die within 7 years of making the gift.
Dedicated Tax Advisor
Regular communication with clients taking their businesses forward
Bespoke Packages
Services tailored to maximise profit and minimise tax for clients.
Hear What Our Clients Have To Say
Ward Goodman consistently delivers exceptional service, exceeding the expectations of our valued tax planning clients.
Useful Things To Know About Inheritance Tax Planning
It’s well known that lifetime gifting saves significant amounts of IHT, but you must also consider the associated loss of income. Trying to give away an asset but still keep its income is usually ineffective.
Some Lifetime gifts trigger immediate IHT charges. Lifetime gifts to trusts, to close companies, or other non qualifying groups are all taxable, but only if they exceed your nil rate band.
Most other gifts of cash to individuals are Potentially Exempt Transfers (PET). These only count for IHT if you die within 7 years of making the gift. If you survive for longer the gift is ignored. Annual exemptions and other reliefs protect many lifetime gifts. Alternatively , WGFS may arrange insurance cover to protect your estate if that is suitable for you.
Gifting assets is more complicated than giving cash. A lifetime direct gift to your family is potentially exempt for IHT, but you have to consider CGT – which is payable in lifetime. CGT is “cheaper” than IHT, and can be mitigated with the right planning advice.
Frequently Asked Quetions
Common questions on tax planning advice.
What are the basics on inheritance tax?
IHT is charged at 40% on your total wealth when you die. This includes all gifts made in the seven years before death. A £325,000 nil rate band (NRB) is taken off the taxable value. If your spouse has predeceased you and left everything to you, you can use their NRB as well. If your will leaves your home to your children or grandchildren then your estate may benefit from extra tax-free slices called a property allowance. The property allowance is not available for larger estates.
Lifetime gifts that are neither to individuals nor to exempt bodies such as political parties or charities, are chargeable to IHT when made, at 20%. Thus, lifetime gifts to trusts, or to close companies, or to non-charitable campaign groups are taxable, but only if they exceed your nil rate band.
Giving cash away does not count for CGT but the gift is a Potentially Exempt Transfer (PET). It will be counted in your estate for IHT if you die within 7 years of making the gift. If you survive for longer the gift is ignored. There are annual exemptions and other allowances which can shelter lifetime gifts.
If IHT could be due on a significant gift then you may consider talking to WGFS to arrange insurance coverage to protect your estate
Alternatively, if you can prove your gifts came out of spare income then they do not count at all for IHT. It is worth seeking advice to see if this can work for you.
Can I give my house to my child to avoid inheritance tax?
Transferring your house to your child can have implications for inheritance tax (IHT) in the UK. While it’s possible to give your house to your child, it may not necessarily avoid inheritance tax entirely.
How much can you inherit from parents without paying inheritance tax in the UK?
As of January 2022, individuals can inherit up to £325,000 tax-free from parents, known as the “nil-rate band.” If the estate surpasses this, a 40% tax rate applies to the excess. Certain exemptions can alter the tax owed.
The Process
Initial referral or inquiry
Whether you’ve been referred or inquired yourself, our team will reach out to you in a timely manner
Free consultation
We offer a no-cost, no-obligation meeting at one of our offices, or over the phone
Quote and setup
We’ll provide you with a tailored quote and when you’re ready, our inheritance tax advisors will begin services
Book a Meeting
If you would like to discuss further, please book a meeting with an experienced member of our team. Simply let us know when’s best for you and we will get in touch to arrange a suitable time.
Why Choose Ward Goodman
Client satisfaction is paramount to us. We have a broad range of clients, and we endeavour to offer them the best service possible through continuous improvement and focus on doing things right the first time.
Experienced Inheritance Tax Advisors
Our Dorset-based inheritance tax advisors support those locally or further afield.
Bespoke Advice Packages
Flexible, bespoke service covering all aspects of tax planning.
Access to a Full Team of Finance Experts
From our Pension Advisors to independent Financial Planners.
Our Awards and Accreditations
Ward Goodman’s excellence in accounting and tax advice is validated by notable awards and accreditations within the UK financial industry.
Xero Certified
AAT Qualified
Xero Certified
ICAEW Membership
Partnerships
Ward Goodman’s Inheritance Tax Advisors
Ward Goodman’s dedication to excellence is embodied through our team of helpful experts:
Davina Seymour
Bookkeeper
Torie Freestone
Trainee Client Services Manager
Anthony Boni
Trainee Client Services Manager
Other Services You May Be Interested In
IHT is mainly charged on death. Your total wealth plus all gifts made in the previous seven years is taxable. This total is reduced by a nil rate band (NRB).
Are you buying residential or commercial property, or advising clients who are making property transactions?
If you are running a business, you will be involved with a wide range of taxation obligations.
