By NAHT Personal Financial Services, provided by Skipton Building Society
The world of inheritance tax can seem like a minefield, can’t it? So much so that 60% of 45-54-year-olds aren’t fully au fait with the ins and outs of inheritance tax – according to Barclays Wealth. Don’t let this put you off.
Because when it comes to one day passing on the wealth you’ve carefully built up over your career, including as a school leader, knowing the ins-and-outs of inheritance tax now could prove highly worthwhile later on.
So, what exactly is inheritance tax?
Inheritance tax applies if, when you pass away, the value of your estate is worth more than the inheritance tax nil rate band.
If it is, your loved ones may have to pay a big chunk of money – up to 40% on anything above the nil rate band – and are likely to receive a smaller inheritance.
You might be wondering if you even have an inheritance tax liability
After all, it’s only the very rich who have to pay it, isn’t it? Well no – it isn’t. Not anymore.
Thanks to things like the rise in house prices, more and more families are becoming affected by inheritance tax – with billions of pounds in revenue collected year-on-year.
Clearly, this is a lot of money. Money that could be kept in the family if you make clear plans. Worryingly, a lot of the mix-up lies around the type of assets that are subject inheritance tax.
The truth is – pretty much everything you own is included in your estate. Your home, savings and investments, car – even your jewellery and household furnishings (minus any liabilities).
When you think about the current surge in property prices, the value of your house alone might take you over the inheritance tax threshold. For a single person, the main nil rate band is £325,000 and for a married couple it’s £650,000. There’s also the residence nil rate band allowance, which can be used to pass on a home to a direct descendent.
Ok – let’s move onto the positives
This article is here to help you. So, don’t worry if you think you might have an inheritance tax liability.
The good news is that there are some things you could be doing now – to help tackle your potential problem as much as possible. In fact, the sooner you address inheritance tax, the bigger the difference it could make to your family’s future.
We don’t expect you to do this alone either. With so many rules to think about, we know how complicated inheritance tax can be. And some things in life really aren’t worth second guessing.
A good time to get your finances in shape
NAHT Personal Financial Services are here to help NAHT members like you. A meeting with one of our expert financial advisors could make a difference to the financial choices you make.
- We’ll help you to work out if inheritance tax is likely to be something you need to plan for
- If that’s the case, we’ll come up with a tailored plan that could help you address a potential inheritance tax liability
- You’ll have the time you need to think over our recommendations, with no obligation to act. There’s no upfront fee to hear our advice either, and you’ll only pay a charge if you decide to go ahead with our recommendations.
Some inheritance tax planning solutions put your capital at risk so you may get back less than you invested. Inheritance tax thresholds depend on your individual circumstances and prevailing legislation, both may change in the future. The FCA doesn’t regulate most forms of inheritance tax planning.
Get in touch today to book your free initial consultation:
Call 0800 121 4596
NAHT Personal Financial Services is a trading name of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted Financial advice. Principal Office, The Bailey Skipton. N. Yorks BD23 1DN