Inheritance tax, estate tax & tax brackets November 2017
Death and taxes…yes we all have to pay them but how much is inheritance tax? When? What are you liable for? How do I pay what I owe? It can be a daunting and difficult task to work this out when you’re actually trying to do your job and live at the same time…
Here are some of the most frequently asked questions and topics including links to information that we receive around tax for individuals.
How much inheritance tax will I pay?
Inheritance tax is a tax on the estate (property, money and possessions) of the deceased. Normally if the value of your estate is below the £325,000 threshold there will be no inheritance tax due or if you leave everything to a spouse or civil partner, charity or community amateur sports club. The Inheritance tax that you will pay is dependant on the structure of your finances and the extent of the Estate left.
Inheritance tax rates / Estate tax rates
The standard Inheritance tax rate is 40% only charged on the part that is over the threshold. The estate can pay Inheritance Tax at a reduced rate of 36% on some assets if you leave 10% or more of the ‘net value’ to charity in your will.
Inheritance tax planning
Without correct planning HMRC could potentially be the biggest beneficiary of your estate. We offer the latest advice to you and your family with the aim of keeping as much of your wealth with your family while allowing you to live the life you want.
The Residential Nil Rate Band, together with the proposed simplification of the taxation of family trusts means that inheritance tax is one of the most misunderstood taxes, but also one of the most relevant. We can help you make the most of the various allowances and reliefs and avoid any pitfalls so that you can pass as much of your hard earned wealth as you can down to the next generation.
To learn more about our tax planning service visit our Tax Planning page below for more information:
Income Tax Rates / Income Tax Brackets
We’re taxed on what we earn…I know it hurts us too. Income tax is structured in ‘bands’ with a current personal allowance of £11,500.
You then pay 20% of anything earned between £11,501 to £45,000
40% between £45,001 to £150,000
45% on anything earned over £150,000
For any further information you can use the link below
Capital Gains Tax
Capital Gains Tax is the tax on the profit when you dispose of an asset, it’s the tax on the gain you make not the total that you receive. You pay Capital Gains Tax on chargeable assets:
- most personal possessionsworth £6,000 or more, apart from your car
- property that isn’t your main home
- your main home if you’ve let it out, used it for business or it’s very large
- shares that aren’t in an ISA or PEP
- business assets
For further information on capital gains tax in the UK you can follow the link below:
Income Tax Calculator
If you’re looking for a quick way to roughly calculate your take home pay after tax here is an online tool that can give you some guidance:
Remember not everyone’s tax affairs are this simple and if you need help or a little advice we’re always here to help.
Get the advice you need:
If you are interested in learning more about how to structure your finances and take advantage of our expert accounting & tax knowledge in Sussex & the South East get in touch with Robin our Tax Partner and head of our ‘Private Client’ arm of the business who can offer you some guidance on the best strategy to take.
Robin Stevenson - Tax Partner
Tel: 01825 763 366
Swindells’ Inheritance Tax Seminar – 6th September
Please join us for our latest Inheritance Tax planning seminar Robin and Duncan will be in reflective mood, looking back at planning strategies that have over the last 10 years saved our clients millions in Inheritance Tax, and looking forward, strategies that we expect to be equally successful in the future.
How to plan for a successful small business exit
A survey by Securian has suggested that more than half of small business owners plan to leave their businesses within ten years, that but three-quarters of them have no plan in place to make a successful exit. This article will help you understand what an exit strategy is, why it’s important and how to begin to put one in place.
Sign up to receive our private content
straight to your inbox