Inheritance Tax in the UK: Myths and Reality

Inheritance Tax in the UK: Myths and Reality

Inheritance Tax (IHT) is a tax imposed on the transfer of assets from one person to another, either upon death or as a gift. In the UK, IHT is applicable on estates valued above £325,000 and is charged at a rate of 40%. The subject of IHT is often shrouded in myths, so in this blog post, we will attempt to dispel some of these myths and provide a clearer understanding of the reality of IHT.

Myth 1: IHT only affects the wealthy

While it is true that the wealthy are often the ones who pay the most IHT, this tax can affect anyone who has assets worth more than £325,000. This threshold has remained the same since 2009, and with the rising cost of living and house prices, it is becoming increasingly common for more people to fall within the IHT bracket.

Myth 2: IHT only applies to property

IHT applies to all assets, not just property. This includes savings, stocks, shares, and personal possessions such as jewellery and artwork.

Myth 3: IHT cannot be avoided

While there is no way to entirely avoid IHT, there are several ways to minimise it. For example, gifts made more than seven years before death are exempt from IHT, and annual exemptions can be claimed for gifts up to £3,000 per year. There are also other reliefs and exemptions available.

 

To find out more about IHT or to be recommended to one of our Financial experts (in your area) please contact us by emailing info@laurelo.co.uk

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Patrick and Phillipa Vickery (Executor)

"When you lose a parent it’s an emotionally challenging time. Finding people to genuinely help with the mountain of subsequent issues is not easy. We dealt with Laurelo who took care of our Probate. Communicative and easy to talk to, Laurelo took away a bunch of stress and handled a complex estate excellently. I have no doubt that his experience has saved my family a significant tax burden."

C Hardman (Executor)

"Well informed, helpful and efficient throughout the whole probate journey. I was particularly impressed by the speed of response when I had questions"

V Garner (Executor)

"Thank you for dealing with the probate so efficiently. I would not hesitate to recommend your services in the future."

J Jackson (Executor)

"It has been my absolute pleasure to have met Michael and for him to act on my behalf, a wonderful, professional,  caring person whose services I would recommend to anyone."

Peter Nash/Paula Cranmer (Executors)

"I would recommend Laurelo to anyone who needs good and sensible advice about the probate process at a very reasonable price."

A Wilson (Executor)

"I wouldn't hesitate in recommending Laurelo in what, at the outset felt like a daunting task, but in reality once explained to us and the burden of completing the forms taken away and completed by a professional the process was seamless."

Lorri Turner Senior Manager (Herongate Wood)

“I have always found Michael at Laurelo to be engaging, honest and supportive of the customers needs. The offer of a home visit to see clients within their own familiar surroundings further supports this. I have no difficulty in recommending their services."

G Perrett Will Protect Ltd & Executor

“Michael's professionalism and knowledge of every aspect of probate is only matched by his sensitivity and patience. He instinctively knows what to say and when to say it and I am so grateful to him for helping me navigate the most difficult period of my life so far safe in the knowledge that I could simply "park" this part of the process and leave it with him to "sort out"."

K Whittle (Executor)

“They provided a professional and emphatic approach and took all the stress away from dealing with probate. Filing the forms very promptly and the whole process was dealt with in just over a month. I would highly recommend and I again thank them for their help."

Mr. A Browne (Executor)

The pricing point is good and in line with a few others, we found however for the service we received I do not think we could have put a price on it.

We would wholeheartedly recommend Michael and his team."

John F Smith (Executor)

“I was most satisfied with the service he provided, and his gentle and considerate manner was most comforting at a difficult time in my life."

Robert Evans (Executor)

“I just wanted to express my sincere thanks to Michael for the way in which he managed the probate arrangements at what was a very difficult time for myself and the family. Whilst always professional and efficient he was very sensitive and supportive - explaining things clearly and making the whole process (which was totally new to us) that much more straightforward. It took a load off our minds and he progressed things really quickly Thank you"

Here at Laurelo, we're committed to our clients and their path to probate

Here at Laurelo, we're committed to our clients and their path to probate