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Worry Not About Your Heritage With Our Accountants for Inheritance Tax

Even if you have made arrangements, you should keep your Inheritance Tax situation under review as it impacts so many individuals.

Our tax advisors and chartered accountant can ensure that the money you build last up to your direct descendants and more after you’re gone.

Early inheritance tax planning is crucial to reducing the risk of paying a large amount.

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As part of careful preparation and comprehensive tax plan, or on its own, our expert chartered accountants can help you strategise how to pass on your fortune to ensure that your loved ones benefit fully from your hard-earned asset(s).

Inheritance tax (IHT) efficiency in estate planning requires careful preparation and professional counsel. You should pay special attention to those if you also have a business or overseas assets.

Give us a call, and we’ll see how we can help.

Inheritance Tax Simplified

To create a more economically “fair” society, inheritance tax laws were established to end the accumulation of wealth over generations and redistribute it on behalf of the general public through the state.

Originally intended to hit mainly the very affluent, rising property prices (especially in London and the South East) have made more middle-class families vulnerable to Inheritance Tax.

Different strategies for IHT planning are now available to help reduce the likelihood of paying this tax. Currently, the nil rate band (tax-free level) is £325,000 per person, meaning a married couple might have up to £650,000 in assets before paying Inheritance Tax at 40%.

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Additionally, beginning in 2017, a new “resident nil rate band” became available. The supplementary allowance was established so that homeowners might leave their homes to future generations free of Inheritance Tax.

If specific requirements are met, the tax-free threshold will increase to £500,000 per individual or £1,000,000 per married couple if a death happens in the 2020/21 tax year.

An IHT Exemption, relief (such as business or agricultural property relief), and donation made within a seven-year timeframe before death are only some elements that may affect this obligation.

What Is Inheritance Tax Planning?

IHT planning entails analysing a person’s potential future IHT liability. The present worth of all assets, any donations given by the individual in the past seven years, and the individual’s residency and domicile status are crucial to this process.

It is essential to know if they have previously made a lifetime gift and if a will is in place to confirm their wishes.

Following the establishment of the present IHT law, potential solutions can be considered.

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Preparing Annual Accounts with Colleague

Advice On Inheritance Tax

The law surrounding inheritance taxation is a dynamic and intricate field. It is not sufficient to implement a single strategy and then do nothing else. If you want your Inheritance Tax strategy to be effective, you must ensure it’s always up-to-date and fully compliant and make the most of any available reliefs.

Property, family maintenance of wealth, probate, and trusts can all be impacted by Inheritance Tax. To safeguard yourself and your asset, you should take a thorough approach to tax preparation that considers all relevant factors.

Having a current will and ensuring it is examined periodically are crucial components of any Inheritance Tax strategy.

Inheritance tax planning is something our knowledgeable staff can assist you with.

To make sure you’re prepared for anything that may come up, we can also coordinate with our networks of co-accountants and expert partners, such as attorneys and unbiased financial consultants, to deliver professional advice.

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The Pearl Lemon Services

Our business services do not stop with our tax advisors’ help with inheritance tax liability. We also cater the following services:

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Tax Planning

Our tax professionals assist you in making the most of industry-specific tax allowances, reliefs, and perks. Our professional tax advisors ensure that all corporate tax returns conform with HM Revenue and Customs guidelines and are filed appropriately to avoid fines.

International Tax Preparation

Whether you operate an overseas business or plan to relocate abroad, our international tax experts can assist you in saving money on both United Kingdom and non-United Kingdom taxes.

How you set up your personal and company affairs in another country impacts how much tax you have to pay. We’ll develop a comprehensive tax strategy to help you pay less in taxes.

Our international tax professionals ensure that you and your company obey all rules and save you money on taxes in the United Kingdom and worldwide.

Personal Tax Services

Our tax professionals will advise you on every aspect of your tax status to ensure that you comply with the law.

We provide a specialised service for submitting both straightforward and uncomplicated UK taxes. With these tax services, we hope to assist you as an individual, your spouse, your civil partner, and your family regarding taxes.

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Accounting for VAT

VAT accountants ensure that your business pays the right amount of VAT to HMRC and follows all the steps for VAT registration for the best VAT scheme. VAT accountants need to look at your company’s records for accurate HMRC reporting.

These can help you immensely during the tax year and answer all your questions, saving you time and trouble with complicated VAT procedures. Because of the number of goods and services that need VAT, a VAT accountant is highly recommended to make things easy (and save you a lot of money).

VAT is hard to understand and takes time to figure out. A chartered accountant can help with these tasks because they know how to do them quickly and correctly. Any business that sells goods or services taxed by VAT should hire an accounting team.

HRMC Tax Investigations

Tax audits and inspections can be unpleasant, so if you’re unclear about what to do, seek advice from an expert.

Investigations frequently result in large tax bills, insolvency, the need for a time-to-pay arrangement, a voluntary company arrangement, or creditors’ voluntary liquidation.

HM Revenue and Customs will contact you or send you a letter to inform you of the investigation. The initial stage in a tax investigation is a letter of “information notice.” The tax office will want to look at your records during an audit.

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HMRC nearly always calls your accountant if they have the authorisation to do so. You could be punished if you do not respond to an information request or decline a visit.

It’s a good idea to employ a tax specialist to act and speak on your behalf for various reasons, especially during a tax investigation.

These are just a few of the services we provide. Do you want anything that isn’t on the list? Don’t hesitate to get in touch with us.

FAQs

As of the end of 2019, the Inheritance Tax threshold for the 2020/21 fiscal year was set at £325,000. An individual’s taxable estate is generally exempt from Inheritance Tax up to this amount.

After the 2020/21 fiscal year, it will increase in step with inflation.

Regarding death, some people are more at ease than others. We avoid dealing with the inevitable, and this avoidance is the root of all our troubles. Inheritance tax relief is available, although it typically requires a structure to be in place for at least two years before the relief may apply (and this period can stretch considerably longer in some cases).

If we wait until we are old or sick to address the problem, we may be too weak to make a significant change.

We do not want our surviving spouse or remaining family to handle everything else again, so it’s time to get organised, people!

Trust is one option to safeguard property and make it easier to pass through lifetime chargeable transfers.

Although we can offer guidance on the tax implications of trusts, we cannot write trust documents and will need to coordinate with your attorney on this matter as the planning process progresses.

Many actions are required, including:

  • Capitalising on yearly allowances such as the gift tax annual exemption
  • Figuring out whether any assets might be theoretically exempt from transfers handed on to the next generation in the form of chargeable lifetime transfers
  • Determining what types of relief, such as business property relief, are at your disposal
  • Think about donating

Pearl Lemon Accountants understands that one general service plan cannot provide a firm with all the benefits of using our accounting services.

Every service you select for your company or account is personalised to your specific requirements. Because we recognise and value variation and originality in every business we operate, your financial statements will differ from those of other clients. The services you select will also impact the total cost of your order from us. We recommend contacting us as a first step.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.