Everyone is allowed to leave £312,000 (the ‘nil rate band' allowance) to their beneficiaries free of Inheritance Tax. After allowing for PET’s (Potentially Exempt Transfers) the balance of the estate above the ‘nil rate’ band, is liable to tax at 40%. These can be reduced or in some cases negated by properly utilising Trusts linked to appropriate life insurance. Contact us for further information.

 

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