Mills Keep is a legal and tax consultancy, we offers unique solutions for each client who is dealt with by a dedicated Mills Keep director.
Inheritance Tax – by Jeremy Mills
I thought, in the blog this time I would write about this tax which affects most of our clients, how it works including the Nil Rate Band and new domicile rules whichÂ apply from next year.
Inheritance Tax used to be called a voluntary tax as it affected a relatively small number of people and much could be done to avoid or mitigate it. However, much has changed! Many more people are potentially within the Inheritance Tax net and it is much harder to avoid or reduce these tax charges.
Each individual has a tax free so called Nil Rate Band, which is currently £325,000. Assets over and above the Nil Rate Band are taxed at 40% or at 36% if 10% of the Estate is given to Charity. The Nil Rate Band is set to remain at the same level until 5th April 2021.
From next year a Residence Nil Rate Band will be phased in providing an additional Nil Rate Band for many people of Â£175,000 from 6th April 2020. This means that an individual will have an effective tax free sum of up to Â£500,000 from that date. However, the rules are quite complicated and many people will not in fact qualify for the Residence Nil Rate Band!
The key to managing a potential Inheritance Tax liability is lifetime planning. There are a number of statutory exemptions and reliefs which can often be brought into play, which can significantly reduce a tax charge.
Liability to UK Inheritance Tax may be affected by a person’s domicile. The determination of a person’s domicile can be far from straightforward. However, it is an important legal concept that affects tax issues. There are many facto s that will affect your particular situation. Everyone is different. From 6th April next year new rules to determine a person’s domicile for tax purposes will be introduced. Many people will need to review their positions if they have relied on reporting tax on the basis of a certain domicile up until now.
Mills Keep gives you a perspective down the generations. Find out whether you will pay, if so how much and what can be done using our expertise. Take control during your life-time of your tax affairs, income and assets and use our expertise to provide the best opportunities for you and your family. We have many clients who have benefitted from our expertise
For more about IHT contact Jeremy Mills
More About Mills Keep including a video interview with Jeremy Mills
Our comprehensive approach covers in particular taxation and asset protection. Taxation is a concern for many people. And we help businesses and individuals to mitigate tax whenever possible and build security for the future. As part of this our service cover such issues such as residence and domicile, income tax, capital gains tax, inheritance tax, trusts,wills, corporation tax, business protection and succession.
Protecting Assets for the Future – “Down the Generations”
It’s fundamental to Mills Keep that we look at generational planning so that you are protecting and preserving assets for future generations down the family.
We act for all sorts of clients and their families including non-residents, landowners, senior executives and entrepreneurs.
Many other professional advisers operate in a very transactional, departmental and blinkered way. We certainly don’t do that, we cover every aspect, review it with you, agree a strategy, and agree it with you annually.
If people want to make contact, Jeremy is the person to contact so the message is…”let’s talk”
Watch Jeremy speaking about Mills Keep services here