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Probate & Estate Administration

Inheritance Tax

Planning your estate well is essential to make sure that your family properties, prized possessions and important assets are preserved for the next generation. Our expert tax advisors can help you mitigate the impact of inheritance tax (IHT) both in the UK and abroad so your wealth passes on to the people you care about.

High-net-worth and ultra-high-net-worth individuals manage their wealth with a variety of complex international systems and often hold assets in a number of different jurisdictions. This can make inheritance tax planning complicated, especially when the donor or beneficiaries are domiciled or resident in countries other than the UK.

We have a deep understanding of on- and off-shore trusts and work with a network of the world’s finest legal experts in key global jurisdictions to advise on pre- and post-death tax mitigation, including:

  • Excluded property settlements
  • Deeds of Variation
  • Bare Trusts
  • Discretionary Trusts
  • IHT relief

It is important to start inheritance tax planning as early as possible to ensure that your wishes can be followed with a minimum of tax becoming payable. Contact our private wealth team today to find out more about how we can help preserve your estate for the future.

UK top five Private Wealth law firm
Leading private wealth tax advisers
National coverage throughout the UK
International expertise with offshore assets and multijurisdictional families

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YOUR KEY CONTACT

Tim Thornton-Jones +44 (0)207 399 0934

One of the UK's leading teams at your service

Our expert tax advisers can help you plan your estate effectively to protect your wealth for the next generation. Meet The Team

For more information, don't hesitate to contact Tim or the team directly. You can also contact our expert advisors on:
0800 456 1912
Or enquire in writing Write to us

Inheritance Tax Changes 2017

On 6th April 2017, changes were made to Inheritance Tax which may benefit people who want to pass on their estate including their home to children or grandchildren.

In addition to the existing tax-free threshold of £325,000 – also known as the Nil-Rate Band - the government introduced a Residential Nil-Rate Band (RNBR) for estates worth up to £2 million. The RNBR will only apply when a home is being passed on to children or grandchildren and is being phased in yearly starting in the 2017/18 tax year:

  • 2017-18: £100,000
  • 2018-19: £125,000
  • 2019-20: £150,000
  • 2020-2021: £175,000

Currently, married couples and civil partners can transfer their Nil-Rate Band to effectively double their tax-free allowance to £650,000. The RNRB is also transferrable so it will effectively be worth £350,000 by April 2020. This means that couples will be able to pass on a total of £1 million in assets without paying any Inheritance Tax by 2020.

There are now substantial tax savings which will increase significantly over the next three years:

  • Married couples, civil partners or widow(er)s could save £80,000* from April 2017, increasing to £140,000* from April 2020
  • A divorced or single person could save £40,000* from April 2017, increasing to £70,000* from April 2020

Your Will may need to be updated to make the most of this new tax-free allowance. The relief is not an automatic entitlement and does depend upon navigating some hurdles to ensure that the full relief from Inheritance Tax can be claimed. Our lawyers can advise on how the inheritance tax changes will affect your estate and make any necessary amendments to your Will. Our Will Writing Solicitors can also help you take advantage of the new Residential Nil-Rate Band if you don’t have a Will already.

* Benefit depends upon the value of the home and of the estate as a whole

Inheritance Tax Relief

Many of our clients are in a position to take advantage of inheritance tax reliefs to reduce their estate’s tax exposure. Agricultural, business and heritage properties can all be exempt or have their value reduced for inheritance tax, enabling your beneficiaries to avoid having to sell important family assets to meet their tax obligations.

We can assess whether or not you qualify for any of these IHT reliefs and, if appropriate, advise on how to restructure your estate to obtain the maximum relief available for your individual situation.

Contact Our Private Wealth Specialists

Our Private Wealth team is based in London and across the country, and can be reached on 0800 456 1912. Our experts will be happy to discuss your situation at your discretion and advise on how we can best support you.

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Leading Firm - Chambers & Partners 2017
Private Client Team of the Year - Legal Business Awards 2017
eprivateclient Top Law Firms 2017
Recommended Firm - Citywealth Leader's List 2016
Leading Firm - Legal 500 2016
Private Client Team of the Year - The British Legal Awards 2016

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