Reducing IHT – Setting Up a Trust
As you may have heard, Inheritance Tax bills have been increasing in 2017, despite the introduction of the residence nil-rate band.
Many people choose to take advantage of gift allowances and other options to reduce the burden of inheritance tax on their family when they pass away. One of these options is to put cash, property or investments into a trust.
IHT Rises in 2017 Despite New Tax Reliefs
Despite the recent launch of the residence nil-rate band, inheritance tax payments have risen sharply between April and August of this year.
According to the latest figures from HM Revenue & Customs, this year has seen a rise of 18.7% in inheritance tax being paid.
Savers are Paying £46,332 “Too Much” Into Their Pension
Pension investors are “saving too much”, according to recent statistics. This is thanks to tax paid by pension savers jumping by 33% in 12 months.
The number of people paying this tax is growing, with an average of £46,332 being paid.
Reducing Inheritance Tax 101
Inheritance Tax (IHT) has hit new heights in 2017, with the last figure showing it is now up to £5 billion.
New rules extending the IHT-free allowance have, however, come into play, and mean that some couples may be able to pass on £1 million tax-free by 2020. Nevertheless, IHT is expected to rise even more over the next 5 years, potentially reaching £6.2 billion by 2022.
With this in mind, there are a few ways you can reduce the likelihood of a hefty IHT bill.
Autumn 2017 Update
Read our Autumn 2017 Update – Elections, Bills and Budgets.
In this issue:
Are you covered on personal lending?
Inheritance tax receipts hit a new high
You’ve used your ISA allowance – what’s next?
Funding a degree in debt?
Coventry & Warwickshire Chamber of Commerce event
On Friday, we were delighted to have the opportunity to have a stand at the Coventry & Warwickshire Chamber of Commerce event in Stoneleigh. It was a fantastic event, and marvellous opportunity to make new business connection with attendees and exhibitors alike. Pictured is Dan Styles, Financial Planner at KLO.