Inheritance tax is paid on property and assets gifted by an individual during their lifetime or held at the time of death. With recent house price increases Inheritance Tax (IHT) affects more families than ever. In the 2008/09 financial year, IHT will hit estates worth over £312k. This is due to rise to £350k by 2010. Together with the fact that HM Revenue & Customs have tightened their attitudes on personal taxes, e.g. with the rules on pre-owned assets, it is more important than ever to seek early advice.

With sound professional advice, many people who would have paid high levels of inheritance tax, could have reduced their tax bill. IHT should not be a nasty shock and indeed there are exemptions and reliefs that may apply to you.

Specialists at Mercer & Hole can keep on top of the form filling and administration required in the calculation of inheritance tax and provide tax planning advice. We can also recommend solicitors to you, if it would be advantageous to redraft your Will to be more tax efficient. Tax planning advice that is appropriate to your situation, accurate and cost efficient should help in the planning of your family’s affairs to keep IHT charges to a minimum.

For further information please contact one of our private client specialists. You can also find comment and discussion in our Tax Plus Blog or see our Inheritance Tax calculator for a quick review of your tax position.