Liberty Partnership

Independent Financial Advisors Peterborough: What Is The Transferable Nil Rate Band for Inheritance Tax?

Independent financial advisors Peterborough are asked many questions in the day to day course of their work. Some of these questions will be related to inheritance tax which, despite its relative rareness, is something that many people are concerned about. One of the key questions asked about inheritance tax is about the transferable nil rate band.

The tax band called the transferable nil rate has existed since 2007. It means that a transfer can take place of any ‘unused’ part of a deceased civil partner or spouse’s inheritance tax threshold. It is given over to their living partner for use when they pass away. A competent financial advisor Cambridge will be able to help you organise this if it needs to be done. What this transfer means is that an individual’s inheritance tax threshold of £325,000 can be as much as doubled to £650,000 when it is given across to a partner. This is assuming that none of the original tax threshold was used at all. It could also be any amount between £325,000 and £650,000, which is why having a good financial advisor Peterborough on hand will be of great help. If is therefore possible that no inheritance tax at all will be owed when the second spouse dies, provided the estate is worth less than £650,000, or the sum the final figure works out to be. For the threshold to be transferred, the personal representatives or the executor of the estate of the second spouse or civil partner need to complete a variety of forms and send them, along with supporting documents, to HMRC. Ask your financial advisor for assistance.

Independent financial advisors Peterborough are exceptionally good value – particularly in the case of Liberty Partnership Ltd. Using us to help you with your finances can save you time and, of course, money. Get in touch with us today on 01778 342291 or advice@liberty-partnership.co.uk, and see our website at https://liberty-partnership.co.uk for further information.