We will always consider the following as part of our tax planning process:
- Income Tax
- Capital Gains Tax
- Inheritance Tax
- Stamp Duty
- Dividend Tax
- National Insurance
- Corporation Tax
A tax wrapper is an investment product or structure that helps you mitigate the tax you pay on savings and investments. When designing your financial plan, diversifying your tax wrappers can help you maximise your returns. At Bigmore Financial Planning, we review all major tax regimes and their interaction. We then work with you to ensure that we fully assess your own circumstances and provide tax advice specific to your needs.
These each have their own basis for taxation and we consider them when providing you with personalised financial planning. These include but are not limited to:
The amount of money being paid in Inheritance Tax is growing every year. With the threshold not increasing in line with property values and the move of pensions into the estate for IHT purposes, this will only continue to increase. With proper IHT planning and financial management, it can be possible to reduce what your estate is liable for. This is where Bigmore Financial Planning can help.
When considering your IHT liabilities, we use a wide variety of products and tools to help you make a plan. These may include:
An estate in excess of £325,000 could be liable to a 40% IHT (Inheritance Tax) bill. It is therefore no surprise that inheritance tax becomes a major focus for many and requires careful planning. We specialise in providing advice to families on the most tax efficient ways to pass on their legacies. If you want to preserve your estate, it is never too early to have the conversation about Inheritance Tax planning.
Inheritance Tax is charged at 40% of the value of your estate over the IHT nil-rate band. This is currently set at £325,000 for individuals.
This can be combined for married couples amounting to £650,000 of estate which will be free of IHT.
Any unused nil-rate band can normally be passed on in the event of death to the surviving spouse.
In April 2017, an additional Inheritance Tax allowance, known as the Residence Nil Rate Band (RNRB) was introduced.
Anyone who owns a home (or a share of) which forms part of their estate, has an additional £175,000 IHT-free allowance. This means that individuals in this scenario will have an overall IHT-free allowance of £500,000.
Married couples and civil partners can inherit any unused allowance. This means that there is potential to pass on up to £1m before having to pay any IHT.
We have specialists within our Bigmore Wills & Probate business who can also offer tailored will writing, lasting power of attorney, probate services, and trust advice.
Please note: The Financial Conduct Authority does not regulate tax advice, Trusts, Wills or some forms of Buy to Let.
The topic of Inheritance Tax can be complex, and the solutions that are right for you are certainly bespoke. If you are unsure of how IHT will impact your estate and want to understand a bit more about it, please read our Guide to Inheritance Tax.
For personal advice and help with your estate planning, please do get in touch with the team at Bigmore Financial Planning.
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