ISA V Pension – two very different tins of biscuits!
THAT moment I’m cornered at the BBQ with ”Should I put my money in a pension or an ISA?” Well, it’s like a wagyu burger versus a beer – both can be enjoyable but both do very different things. Let’s start with the ISA. It’s the financial equivalent of a well-stocked fridge. You can put […]
The pensions robbery tax?
I’M disappointed…in a ‘seriously-you-thought-this-was-OK’ sort of way. The Treasury has decided to go ahead with the ‘pull a rabbit from the hat’ for April 2027. Not a fluffy nice bunny, type. More like a fatal attraction style. From that date, most unused pension pots you leave behind will be dragged into your estate for inheritance […]
The inheritance tax trick you might be missing
IF there’s a subject more likely to turn off your dinner table conversation than inheritance tax (IHT), I haven’t found it yet (politicians aside). That is until you realise just how much money you could lose – or better, save, simply by understanding one thing: the transferable nil rate band. Stick with me – it […]
When Daffodils don’t bloom: Lessons in inheritance tax from beyond the grave
IT’S not too often we wake up thinking ‘today’s a belting day to plan my death duties’. Yet every year, families are blindsided by the bureaucratic mess and tax bill which can follow a loved one’s passing on top of the trauma of loss. There’s one thing Inheritance Tax (IHT), let alone life, teaches us, […]
Pensions, inheritance tax, the budget
THE changes in pensions in the budget really are a smack in the face with an old wet fish for financial planning. Tabled as altering ‘loopholes’ they are pretty brutal in their measure in terms of bringing pensions under the scope of Inheritance Tax. The changes do not come into effect until 2027, and there is […]
Borrowing to repay inheritance tax
IN as polite a way as I can put it, inheritance tax is as popular as the most unpopular thing you can think of! Inheritance tax is set at 40 per cent of the estate after allowances, with the nil rate band of £325,000 being the biggest one. You also have a residence nil rate […]
Further tips on inheritance tax
A COLUMN which I wrote a couple of weeks back about releasing equity from your home to mitigate Inheritance Tax created some further questions which I will mop up here with some useful tips on inheritance tax. Can I give my house away and still live in it? Technically yes you can, but it wouldn’t […]
Using equity release for Inheritance Tax planning
I COVERED the methods of mitigating Inheritance Tax last week and was asked a question regarding equity release to mitigate the tax where the property or home may be causing the tax. As house prices have rocketed, so too has the value of our taxable estates. Inheritance Tax is charged at 40 per cent on […]
Best methods of mitigating inheritance tax
THERE is often ‘fear driven’ communication around Inheritance Tax which can leave people paralysed to act. In reality, it’s possible to mitigate Inheritance Tax impact quite easily so here’s a quick summary of some effective methods to reduce your Inheritance Tax liability. First and foremost, every individual has a nil rate band, which is the […]
Inheritance tax changes – yawn!
THE government has mooted a potential change in inheritance tax rules. It is being put forward as a potential election winner, but the belief is that the ‘changes’ are just to be written into a manifesto, so we are probably more likely to see ET returning, even with today’s phone systems. We just know how […]
Long Term Care – Estates Don’t Have To Be Liable
Without question, long term care is one of the biggest threats to the passing down of capital to our children. Unlike Inheritance tax, which is applied as a tax at 40% on transfers over £325,000, your personal estate can be liable for every penny over and above £23,500. It is also a tax on the […]
UK Inheritance Tax
£80,000 per person in Inheritance tax I have just found out that my life insurance could be liable for UK Inheritance tax. Is this correct? This was a question we received recently from one of our clients. In simple terms, UK inheritance tax is a charge of 40% on any assets valued at more than […]