Inheritance Tax Planning Solicitors
As Featured In
Based in London, Northampton and Birmingham, here at Witan Solicitors, we are experienced inheritance tax planning solicitors who have been helping clients across the UK with their estate planning since 2014. We make sure that your Will adequately represents your wishes and that all your assets will be distributed accordingly after you are gone.
When you instruct us to draft or review your Will, we can review your assets and advise on your likely inheritance tax liability and ensure that your Will is drafted in such a way that it is as tax-efficient as possible. We can also advise you on trusts and succession planning.
If you would like to discuss your inheritance tax planning with our legal team, please contact us on 0300 303 2071 to book your initial no-obligation consultation or send an email to info@witansolicitors.co.uk.
What We Advise On
Our inheritance tax planning solicitors play a crucial role in helping individuals navigate the complexities of estate planning, ensuring that their assets are handled efficiently and tax-effectively. By providing expert advice, these solicitors assist in safeguarding the financial legacies individuals wish to leave for their loved ones.
We specialise in advising on various aspects of inheritance tax to ensure your estate is handled efficiently, guiding on:
- Estate Valuation: Accurate assessment of your estate’s value
- Tax Thresholds: Maximising exemptions and deductions to minimise tax liability
- Lifetime Gifts: Strategically planning and executing gifts to reduce potential tax burdens
- Inheritance Tax Allowances: Utilising available allowances and reliefs effectively
- Trusts: Implementing trusts to protect assets and manage tax implications
Inheritance Tax
Inheritance Tax is a tax paid after your death on the value of your estate. It is currently collected at 40% above a threshold and can cover everything you own, including:
- All your properties, bank accounts, investments and valuable items
- Your shared assets, such as anything you co-own with your spouse
- Any trust funds you are a beneficiary of
- Lifetime gifts you have made within the last 7 years before your death (exemptions apply)
- Any assets that you have given away but still benefit from (e.g. a property you have given away but you still live on, rent-free)
- Any assets you own overseas (if you are domiciled in the UK)
Many consider inheritance tax to be an unfair tax and the rules surrounding it are complicated. For example, business assets and agricultural assets may be relieved from inheritance tax. Also, if you leave your inheritance to your spouse or to a charity, they may be exempt from paying inheritance tax. However, anything your spouse inherits will then be subject to inheritance tax once they pass away. This is why it is important to seek legal advice to minimise your Inheritance Tax liability and optimise the way your financial affairs are handled upon your death.
Our inheritance tax planning solicitors are dedicated to finding the best solution for setting out the structure of your assets so that what you leave behind is protected from inheritance tax deductions and your loved ones receive as much as possible.
The Importance of Engaging a Solicitor
Understanding the nuances of Inheritance Tax law can prove to be a difficult task. That is one of the reasons why engaging a proficient solicitor is imperative.
Inheritance Tax solicitors bring specialised expertise, adeptly navigating the intricacies of tax law. They offer tailored advice, crafting strategies that align with your individual circumstances and objectives. Moreover, these solicitors ensure strict adherence to current legal requirements in all planning endeavours. This comprehensive approach provides you with peace of mind, instilling confidence that your estate is strategically structured to minimise tax implications and safeguard your legacy.
Inheritance Tax and Other Legal Areas
Inheritance Tax law often intersects with various legal domains, such as family law, property law, and trusts. Our solicitors provide comprehensive guidance, considering how inheritance tax interacts with:
- Family Law: Addressing matrimonial and familial considerations
- Property Law: Evaluating the impact on property assets and residences
- Trust Law: Implementing trusts for asset protection and tax efficiency
Business Succession Planning
Tailored for business owners, our solicitors specialise in the seamless planning of business succession. We excel in accurately valuing businesses for optimal tax planning, strategically implementing succession structures for the smooth transfer of ownership, and effectively minimising tax liabilities throughout the succession process. Contact us today if your business requires our expertise.
Making Gift and Gift Planning
Our experienced team of inheritance tax planning solicitors understands the intricacies of gift planning and will work closely with you to develop a personalised strategy tailored to your unique circumstances. Whether you are exploring the Annual Allowance, considering gifts out of income, or contemplating transfers into trusts, we can help.
Annual Allowance
Taking advantage of the Annual Allowance is a strategic approach to mitigate inheritance tax liabilities. Individuals can gift up to £3,000 per tax year without incurring inheritance tax. This allowance can also be carried forward to the next tax year, allowing for larger one-time gifts or a series of smaller gifts over time.
Normal Expenditure Out of Income
Making gifts out of regular income can be an effective inheritance tax planning strategy. Gifts made from surplus income, which do not affect the donor’s standard of living, can be exempt from inheritance tax. Establishing a pattern of consistent, documented giving is crucial to demonstrating that these gifts qualify as “normal expenditure out of income.”
Potential Exempt Transfers (PETs)
A Potential Exempt Transfer (PET) is a gift that becomes fully exempt from inheritance tax if the donor survives for seven years after making the gift. If the donor passes away within this period, the gift may be subject to taper relief. PETs can include various assets such as cash, property, or investments. Understanding the implications of PETs is crucial for effective long-term inheritance tax planning.
Gifts into Trusts
Transferring assets into a trust can offer flexibility and control over the distribution of assets while potentially reducing the overall inheritance tax liability. There are various types of trusts, each with its own tax implications and benefits. Seeking professional advice is essential when considering gifts into trusts to ensure compliance with legal requirements and to maximise tax efficiency.
Our Approach
Established in 2014, Witan Solicitors has built a team of trust and inheritance tax planning experts who are there to guide you with an understanding approach and exceptional professionalism. You can rely on us for honest and clear advice that gives you full visibility of the process and the possible outcomes. We avoid legal jargon and explain everything in simple terms so that you can be in control and make informed decisions about the future of your financial assets.
We put our clients first and we are committed to establishing long-lasting relationships built on trust, so you can rest assured that we will support you and your loved ones to ensure that your wishes are honoured after your death.
Trust Witan Solicitors
- Over 100 years of combined experience in inheritance tax
- A track record of winning cases since 2014
- Expertise from a Legal 500 recognised firm
- Strong legal knowledge
- A multilingual legal team
- Solicitors in Birmingham, London and Northampton
Other ways we can help
At Witan Solicitors, we have expertise in both private and commercial legal matters, so we can also assist you with your early planning using:
- Succession Planning: If you own a family business, our succession planning experts can advise you on how to pass your business assets to your family after your passing in the most efficient way possible, especially when you are operating on a complex shareholder structure
- Lifetime Gifts: If you would like to gift assets to your beneficiaries while you are still alive, our inheritance tax planning solicitors can help you consider all possibilities to avoid unnecessary taxes and to ensure you still benefit from your assets until your death
Contact Us
If you would like to get advice from our trust and inheritance tax planning solicitors in Northampton, London and Birmingham, please get in touch on 0300 303 2071 or send us your query via email at info@witansolicitors.co.uk.
FAQ
What Does Inheritance Tax (IHT) Entail?
Inheritance Tax (IHT) is a tax levied on the estate of a deceased person. The tax is calculated based on the value of the assets left behind, and certain exemptions and reliefs may apply.
What Constitutes the Inheritance Tax Allowance in the UK?
The Inheritance Tax Allowance in the UK, also known as the nil rate band, is the threshold up to which an estate is exempt from Inheritance Tax. As of my last knowledge update in January 2022, this threshold is £325,000 per individual. Additionally, there may be additional allowances or reliefs in specific circumstances.
Is it Possible to Transfer My Tax-Free Allowance to My Spouse or Partner?
Yes, spouses and civil partners in the UK can transfer their unused Inheritance Tax Allowance to their surviving partner. This is known as the transferable nil rate band or the residence nil rate band in certain situations.
How Does Inheritance Tax Impact Business Operations?
Inheritance Tax can have implications for businesses, especially family-owned enterprises. Business property relief (BPR) and agricultural property relief (APR) may apply, providing relief or exemption for certain business assets or agricultural property.
If I’m Not a UK Citizen, Am I Still Obligated to Pay UK Inheritance Tax?
Non-UK citizens may still be subject to UK Inheritance Tax if they have assets located in the UK. Double taxation treaties and other international agreements may affect the tax liability in such cases.
Are Foreign Assets Subject to Inheritance Tax?
Yes, foreign assets owned by a UK-domiciled individual are generally subject to Inheritance Tax. Non-domiciled individuals may have different tax rules applied to their foreign assets.
Upon Inheriting an Estate, Must I Settle Inheritance Tax?
Inheritance Tax must be settled on the estate before distribution to beneficiaries. Executors or administrators are responsible for reporting and paying the tax.
Does the Receipt of a Monetary Gift During the Donor’s Lifetime Incur Inheritance Tax?
In general, lifetime gifts may be subject to Inheritance Tax, especially if the donor does not survive for seven years after making the gift. Certain gift exemptions and reliefs may apply.
Under What Circumstances Might the Nil Rate Band Allowance Increase?
The nil rate band allowance may increase in certain circumstances, such as when the residence nil rate band applies to a qualifying residence left to direct descendants.
When Could the Nil Rate Band Allowance Decrease?
The nil rate band allowance may decrease if the total estate value exceeds certain thresholds or if legislative changes impact the allowances. Regular updates on tax laws are advisable to stay informed.
Qarrar Somji
Solicitor-Advocate
Qarrar qualified as a Solicitor Advocate in 2014 having previously had experience in a varying range of litigation roles.
What our customers say
Inheritance Act Claims for Adult Children: What You Need to Know
It is sometimes the case that an adult child may wish to make a claim against the estate of their parent if they have been left out of the Will or…