The tax situation…
|Current tax rate 40%|
|Tax free allowance £325k|
|Potential addition of main residence nil rate band allowance of £175k|
|IHT liable for anything above £325k|
How can you save Inheritance Tax for your clients?
By using Solidus Trust Frameworks
- your client’s tax liability can be reduced or removed
- next generation tax planning can be achieved
How quickly will your client reach their tax free limit?
It’s a positive step that a main residence nil rate band allowance of £175k may be introduced in 2017, in addition to the current £325k tax free threshhold.
However, even with this extra exemption rate, it’s surprising how quickly a single person or married couple can reach their nil-rate band threshold. With the average family home in Britain now valued at £250k, the remaining allowance can easily be overstepped when the assets include:
a family home, pensions and death benefits, some savings, life cover, investments, vehicles or other possessions.
With that in mind, how quickly will your clients reach their tax free allowance?