The new Conservative/Liberal Democrat coalition has introduced some sweeping tax changes this week, but conspicuous by its absence was the Tories’ proposed increase in the Inheritance Tax threshold from £325,000 to £1 million.Yet, anyone worrying about Inheritance Tax should be aware that it is one of the easiest taxes to avoid and only a minority of estates need pay it.
I spoke to Ben Smaje, managing director or Kennedy Black Wealth Management this morning and he pulled together a few of the most straightforward and effective ways to avoid paying IHT which I wanted to share with Money Matters readers:
January transfer window latest: Man City have signed Patrick Vieira from Inter Milan on a six-month deal for an undisclosed fee, and are close to agreeing the £3.5m transfer of 19-year-old striker Victor Moses from Crystal Palace – but the Eastlands club will have to pay £14m to take Younes Kaboul from Portsmouth!
If your first reaction is, “Vieira’s never recaptured his form with Arsenal in 2004, so how’s he going to fit into a midfield with Stephen Ireland, Gareth Barry, and Nigel de Jong…?”, then there’s not much more I can tell you (although I suppose Mancini could move Barry out to the left and rotate Vieira with de Jong…)
But if, as I suspect, your reaction is closer to, “Why should I care?”, then I’ve got two words for you… “Inheritance tax!”.
It’s not exactly a common chant on the terraces – but might become the talk of the directors’ box following the launch of a new tax-saving product, based on football transfer fees.
Danny Cox, head of advice at Hargreaves Lansdown and Peter Nillist from law firm Clarke Willmott, will answer readers’ questions on how to write a will and minimise your iht bill from 3pm this afternoon.
All too often people die intestate and there are many stories that should make you think about organising a will, including reports about families falling out after someone dies.
For more information about this Q&A and to read the answers to your questions go to the indepth Q&A page or post a question now to firstname.lastname@example.org.
Also, if you would like to win £1000 to save or spend on estate planning enter our online competition run in conjunction with Unbiased.co.uk.