Tax, Trust & Estate Planning
We can provide expert guidance on tax and estate planning. Assisting you to plan in the most tax efficient way and helping you reduce your tax liabilities in all aspects of your life.
After having worked hard to build up your estate, it is important that you have a solid plan in place. This means you can pass on that wealth to the people you care about and minimise the amount of tax you pay.
It's important to make sure you aren't paying more tax than you need to. Taxation can be very complicated, and the rules, reliefs and allowances often change. This is where we can advise you.
Tax is often the last thing that is considered by families when a relative dies. However, you should be prepared and plan ahead.
We can talk you through the simple steps you can take now to plan for what is to come. We will help you to structure your estate and financial arrangements so that your assets can pass to your beneficiaries tax efficiently.
Tax Planning is not regulated by the Financial Conduct Authority.
The benefits to the treatment of tax will depend on your individual circumstances and may be subject to change in the future.
Trust planning can help protect your assets for generations to come. The main reason we use trusts is to make assets more protected from third party threats such as a beneficiary's divorce.
The Financial Conduct Authority does not regulate advice on Trusts.
As a consequence of increasing property prices more people than before have found themselves becoming liable for Inheritance Tax.
The Inheritance Tax threshold remains unchanged for 2023/24 at £325,000, as has the residence nil rate band at £175,000. The residence nil rate band means individuals (with direct descendants) may be eligible for the additional residence nil rate band, so on death they can pass on more of the value of their estate, tax free, to their children or grandchildren.
Residence Nil Rate Band
The Residence Nil Rate Band is where each eligible individual can claim an additional inheritance tax allowance of £175,000 (tax year 2023/24), (reducing by £1 for every £2 that an estate exceeds £2,000,000) to offset the value of a family home on death, on top of their existing £325,000 inheritance tax exemption.
This Residence Nil Rate Band is set to £175,000 in 2023/24 and has been frozen until 2025/26. It can only be claimed where a main residence is passing to direct descendants on death and the amount can't exceed the property value.
There is a wide range of investment products which are acceptable to HM Revenue and Customs, which enable investors to reduce their potential liability to either income tax or IHT or both.
Pension scheme members can also reduce their family's liability to IHT on the value of the member's death benefits by leaving the funds within a pension wrapper (beneficiary's flexi-access drawdown) or having a lump sum paid to a bypass trust.
Ultimately, financial planning will focus on what happens to the estate when you are no longer around, we can help by talking to you about the importance of making a will and the basics of IHT. Should you then wish to find out more about estate planning and IHT we can arrange an initial discussion.
The Financial Conduct Authority does not regulate Estate Planning.
Investments which form part of a deceased's estate are re-valued at the date of death, so if they are sold there will be no capital gains tax to pay on any profits arising up to the date of death.
An additional service which most professional advisers are able to provide is cashflow forecasting. This uses specialist technology to calculate the period of time over which a given investment portfolio might be expected to meet identified needs for income and or capital.
Capital Gains Tax
Let us help you make sure you aren't paying more than you need to.
Individuals are entitled to an annual exemption. If you think that your investments have made substantial gains and you have not yet made use of your annual exemption, you should consider taking financial advice as you may be able to utilise your annual exemption, or reinvest in an ISA (subject to the ISA limits).
Inheritance Tax is a tax on the deceased's estate in excess of their nil rate band(s). Any ownership of a business, or share of a business, is included in the estate for Inheritance Tax purposes but in some cases will qualify for relief from inheritance tax. Let us help you with your Inheritance Tax liability.
The Inheritance Tax threshold remains unchanged for 2023/24 at £325,000, whilst the residence nil rate band has increased to £175,000. This means individuals (with direct descendants) may be eligible for a residence nil rate band so they can pass their home, or its value, on to their children or grandchildren potentially tax-free after their death.
Trusts can be a useful means of preserving wealth, by allowing assets to be passed down through the generations in a secure and tax efficient manner. There may be tax advantages in setting aside assets in a trust.
The Financial Conduct Authority does not regulate Inheritance Tax Advice where there is no investment element.
The Financial Conduct Authority does not regulate Will Writing or taxation and trust advice.
Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.