Income tax, Capital Gains Tax, Inheritance Tax – just a few of the things which may impact you during your lifetime and sadly, even when you are gone.
The most important one where your assets are concerned is Inheritance Tax. Will your estate have to pay this tax when you die? The current rate of IHT is 40%.
This is rarely a straightforward question. The answer may depend on how much your estate is worth, what it is made up of, who you are leaving it to, and how.
Generally, if you leave your estate to your spouse, there is no Inheritance Tax (IHT) to pay. Gifts to spouses are always exempt. However, that might mean that when your spouse dies there will be IHT to pay.
In addition, each individual has a IHT personal allowance of £325,000, so when they die they can have assets of up to that amount before any IHT is payable. If their estate includes a property which they leave to their children or grandchildren, they can have a further £175,000 tax free.
However, the law is constantly changing. For example, if you have a pension pot it may, from 2027, be treated as part of your estate for IHT purposes.
Tax is, as always, complicated, and subject to rules and exceptions which make it crucial that you consider how you dispose of assets during your lifetime, as well as what would happen following your death.
Knowing the risks and potential liability can help you minimise the tax payable on your assets, whether during your lifetime or after you’re gone.
I can help and advise you with this.
You can email me at galvinlegal@outlook.com or call me on 
if you would like to chat.
