Liberty Partnership

Financial Services Peterborough: What Is Inheritance Tax?

Financial services Peterborough wide cover many different aspects when it comes to your finances. There is far more to money than simply earning it and then spending it – and that is why so many people turn to financial advisors for help. Inheritance tax is one aspect of finance that is often confusing.

Inheritance tax is a topic that everyone has heard of, but is actually something that very few people will have had to deal with. That’s because it is rather unusual for anyone to have to pay it. It’s estimated that in the 2016/2017 period, for instance, only around 40,100 families will be obliged to pay any inheritance tax. Overall, it raises very little money for the Treasury; nonetheless, it is still something that concerns people. An independent financial advisor Peterborough will be able to reassure you. Inheritance tax is only imposed if the total value of the deceased’s estate is worth more than £325,000 (at the time of writing). Anything less than that is not subject to inheritance tax. Any estate equal or exceeding that amount attracts a 40 percent tax rate. But the £325,000 figure is not a high one, considering how much houses cost today; nonetheless, there are ways to mitigate the risk of having to pay. Married or civil partners can transfer their tax allowance to their spouses or partners when they die, meaning that the remaining member of the couple’s inheritance tax threshold is actually £650,000 instead. As a result, they can pass on up to £650,000 worth of property and assets before being taxed on it. Your financial advisor Cambridge will have all the details.

Having to pay inheritance tax is a rare event in the UK, but if you are concerned about being taxed in this way, then you should seek out financial services Peterborough based. Financial advisors Liberty Partnership Ltd will have all the answers. Find out more at https://liberty-partnership.co.uk, or contact our excellent team on either 01778 342291 or advice@liberty-partnership.co.uk.