Inheritance Tax (IHT) represents a serious threat to an increasing number of Estates here in London and the Home Counties.
It is a tax levied on the transfer of an individual’s Estate on their death to non-exempt beneficiaries (subject to a Nil Rate Band).
IHT is usually paid on a property when somebody dies, although it is also sometimes payable on trusts and gifts which are made within seven years of the individual’s death.
As long as the value of your estate is not above £325,000 (inclusive of gifts and trusts), you will not be faced with the 40% IHT on any sums exceeding this threshold.
As the Nil Rate Band is transferable between spouses, couples can protect up to £650,000 of their estate from IHT on the death of the second spouse.
There is an additional allowance called the Residence Nil Rate Band which by the time it is fully phased in (April 2020) will be worth a further £175,000 per individual.
As with the Nil Rate Band, it is transferable between spouses but this allowance applies only if you have owned a house and have children.
We will assess the scope for potential IHT and the availability of exemptions and reliefs to ensure you can pass on as much of your accumulated wealth as possible.
Contact us to arrange an appointment with one of our IHT and Estate Planning specialists.
I always get quick, clear and definitive responses from the Harwood Hutton tax team – commercial answers to commercial issues.Robin Berry – Morgan Management
Right from the outset Harwood Hutton gave us direction and great advice – and that advice has evolved over the years as we’ve grown. We’re both medium-sized companies providing a bespoke service – one furniture, one accountancy – and the relationship works.Andy McCarron, McCarron and Co
I’m deeply impressed with Harwood Hutton’s extensive knowledge of tax arrangements for residential and commercial property landlords.Qadeer Ahmed, MD, ABA Finance
They really took their time to understand what was important to us and our business and the expertise we required. Whoever we speak to at HH, we get the same fantastic response and technical input. It’s a real partnership.Edward Finch, group MD, MRIB insurance brokers
I have worked with the directors at Harwood Hutton on a number of mutual client matters over many years. The reassurance of their clear, commercial and focussed advice is one of the main reasons I regard this as one of my most valuable professional relationships.Frank Wessely, Partner, Quantuma LLP
Harwood Hutton never seem to rest on their laurels. They are always seeking out new avenues and ways to improve their offering. A very forward-thinking company with staff who are always well briefed and who approach each task with drive.Karl Austen, MD, Surefoot Communications
We have engaged Harwood Hutton in several areas of structuring, including VAT issues, decoupling an SPV from a group structure and HMRC clearance for a transaction. The team have exceeded all expectations by being proactive, measured and very thorough.Adam Fawsitt, Director, FHT Limited
We moved to Harwood Hutton as they delivered a succinct and professional proposal. If anything, we have been more impressed post-move. They are a fantastic company to work with. They do truly differentiate. They have the skills and capabilities of a mega firm but with a personal service.Edward Finch, group MD, MRIB insurance brokers