Inheritance Tax Planning

At H2 Accountants, we understand the importance of preserving your wealth for future generations. Our comprehensive Inheritance Tax (IHT) planning services are designed to help you minimise the tax burden on your estate and ensure that your loved ones benefit from your hard-earned assets.

Why Inheritance Tax Planning is Essential

Inheritance Tax can significantly impact the value of your estate, with rates as high as 40% on assets above the nil-rate band. Proper planning is crucial to:

Reduce Tax Liability: Utilise available reliefs and exemptions to lower the taxable value of your estate.
Protect Your Wealth: Ensure your assets are distributed according to your wishes without unnecessary tax erosion.
Provide Peace of Mind: Gain confidence knowing your estate is structured in the most tax-efficient manner.

Our Inheritance Tax Planning Services

We offer a comprehensive range of services tailored to your needs. Our team will help you with estate valuation and analysis, identifying potential IHT liabilities early on. We’ll guide you through using exemptions and reliefs, such as the annual gift allowance, and strategies for making gifts from your income.

Thinking about setting up a trust or making lifetime gifts? We can assist with that too, ensuring your assets are managed and protected efficiently. Our experts will help you draft tax-efficient wills and coordinate with legal professionals to make sure your wishes are fulfilled.

Additionally, we’ll explore life insurance options to cover potential IHT liabilities and assist with family business succession planning, ensuring a smooth transition to the next generation.

Our Approach

We take a personalised approach to IHT planning. We start by understanding your financial situation and goals, then develop a bespoke plan that aligns with your wishes and optimises tax efficiency. Our dedicated team works closely with you, providing support every step of the way for you and your family.

Frequently Asked Questions

The nil-rate band is the threshold below which no IHT is payable. As of the 2023/2024 tax year, it is £325,000. Amounts above this threshold may be subject to a 40% tax rate.

Yes, you can make gifts to reduce your estate’s value. There are various exemptions, such as the annual exemption of £3,000 and small gifts exemption of £250 per person.

Trusts can be an effective way to manage and protect your assets, potentially reducing the IHT liability by transferring ownership out of your estate. There are costs to setting up and maintaining a trust, so speak to us to find out if this makes sense for your situation.