While we wait to understand how Brexit will affect us, there are a number of changes coming this year, many recently announced in the 2018 Autumn Budget. We’ve created this article about what these changes are and how they might affect you.
How you can help your family and dependants now and when you’re not around
When providing for your family and distributing your legacy you can give away as much as you like – but remember that the executors of your Will need to pay any inheritance tax (IHT) due before your assets can pass to your beneficiaries.
Typically, clients have retired when they begin to plan for IHT. For some clients, this may be too late, as this raises the possibility of being taxed on gifts already made as they’re more likely to die within the seven year timeframe for tax-free gifting.
How much is your estate worth?
Married couples and civil partners can pass their estate to their spouse tax-free when they die. You will also need to consider how your estate will be passed to your dependants. If your estate is valued at less than £325,000, there’s normally no IHT to pay. Only the part of your estate above this threshold will be subject to IHT (currently 40%) – but of course, there are reliefs and exceptions.*