The research by Saga indicates more than 25% of homes sold in England and Wales so far in 2016 now exceed the single person nil rate band for inheritance tax. Perhaps not surprisingly, the biggest areas for growth were central and outer London.
These figures indicate that increasing numbers of people need to be planning ahead in relation to inheritance tax. Individuals are given an allowance of £325,000 which remains as such if fully intact on death. Above that figure, tax is set at 40% of the value of your estate.
IHT planning should form part of the advice you are given as part of the process of writing a Will, as Alexandra Bartrope explains: “While everyone would welcome with open arms an increase in the value of their property (and many have benefitted from a substantial increase over the last few years, particularly in London), have the inheritance tax consequences of increased wealth been considered?
“Given the number of properties in London sold above the threshold increased from 34% in 2009 to 72% this year, getting advice on inheritance tax is essential and should form part of the advice you receive when making a Will.”
For more information about writing a Will and IHT liabilities, please contact Karmen Ko (firstname.lastname@example.org) on 020 7539 4138.
This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained here.