Inheritance Tax & Estate Planning
At Clark Willis, we can work with you on mitigating any Inheritance Tax liability you may have, either on your death or any lifetime gifts, and provide recommendations to reduce the tax payable.
We can work independently or in conjunction with your financial advisers and accountants to ensure your estate planning strategy is tailored to you.
- Inheritance Tax Planning
- Business Succession and IHT Relief
- Agricultural Succession and IHT Relief
- Residential Care fees
Our Private Client team includes members of STEP, the global professional association for practitioners who specialise in family inheritance and succession planning.
Frequently Asked Questions
What is the current Inheritance Tax Threshold?
Each person has a current threshold at which inheritance tax (IHT) becomes payable on their estate of £325,000. (This is known as the nil-rate band.)
Current IHT Rate
Inheritance Tax is payable at 40% on deceased estates and 20% on certain lifetime gifts. It is possible to reduce the rate of IHT from 40% to 36% with charitable gifting.
Residential Nil Rate Band (additional property allowance)
Introduced in April 2017, there are also additional residential property allowances available if property is left to a direct descendant, currently £150,000 which rises to £175,000 in 2020/21.
Married Couples - Transferable allowances?
In the case of married couples, a widow can also utilise any unused allowance of a deceased former spouse meaning that potentially, married couples to have an estate up to £1m in the 20/21 tax year before IHT will be payable.