Financial Planning For Me

Inheritance Tax in 2025

The inheritance tax threshold, currently set at £325,000, will remain at this level until 2030. A 40% tax is imposed on any amount above this. There's also a £175,000 residence nil-rate band for estates left to direct descendants. The band is reduced by £1 for every £2 above £2 million. It is important to note that these allowances are only the starting point for calculating inheritance tax. There are a number of other factors that can affect the amount of inheritance tax that is due, such as gifts made during lifetime and the value of certain assets.

Effective Inheritance Tax Planning

Setting up a trust

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Trusts can be used to hold assets on behalf of beneficiaries, which can help to reduce the amount of IHT that is payable on the estate.

Residence nil-rate band

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Making use of the residence nil-rate band. This is an additional £175,000 that can be applied to the value of your home when calculating IHT.

Gifting

Making gifts to your beneficiaries during your lifetime. Gifts that are made more than 7 years before your death are not subject to IHT.

Book My Free Inheritance Tax Planning Review

Plan for your tomorrow today

Planning for Inheritance Tax is crucial to reduce the amount of tax that your estate will owe in the future. Don't leave your family's financial future to chance. Take the first step towards securing your legacy.

We will connect you with a local qualified finical adviser. You can take a step forward by filling out a form to schedule your consultation.

During the consultation, the adviser will discuss all available options with you, and there will be no obligation to commit.

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