Example


Inheritance Tax (IHT) at 40%, once the problem of only the very wealthy, now captures many more people, often those who have worked hard and saved all their lives. This is largely a voluntary tax, and can be partially or totally avoided with some simple thought and careful planning; consider these examples:

The Anderson‘s estate is valued at £1,450,000 in May 2019. On second death they leave everything to their children including their main residence. After the nil rate bands and the prevailing main residence bands are applied, the remainder of their estate is taxed at 40%, leading to a tax bill of £200,000.

The Barnett‘s estate is also valued at £1,450,000 and they also leave everything, including their home to their children. £500,000 of their other assets were comprised of BR qualifying shares which they held for more than two years. On death, the estate does not need to pay IHT on the shares that qualify for BR, but only on the balance, giving an IHT bill of £0 i.e. a saving of £200,000 compared to the Anderson's estate.

 

IHT Calculator

Assumptions

Calculations are assuming the second death of a married couple

No account is made for pensions or assets in a QNUPS because these are excluded from your estate and IHT

The main residence will be passed to a direct descendant (not a spouse)

You have not inherited some or all of a spouse‘s nil rate band or residence nil rate band

No assets will qualify for Business Property Relief

If any of the above assumptions are not true for your circumstances, then the result will be significantly altered. You should seek financial advice.

If you have recently downsized or sold your main residence then you could still benefit from more or some of the Residence Nil Rate Band if the previous residence would have qualified; this calculator does not account for this.

Gifts made in the last 7 years should be subject to inheritance tax on the recipient.

Next Steps

VIEW OR DOWNLOAD the Information Memorandum in full

View or download the Factsheet Summary

Contact me to discuss my situation

Apply Now

Important Information:

We strongly recommend that you consult your own professional adviser before making any investment decisions. The benefit of tax relief depends on the personal circumstances of the investor, circumstances of the company and future changes in tax rules and regulations. Before making a decision to invest, please ensure you read the Information Memorandum in full, paying particular attention to the section Risk Factors.

You could lose all of your money invested in this product.
This is a high-risk investment and is much riskier than a savings account