An Independent Financial Adviser (IFA) should always be your first point of contact to obtain free, impartial advice on your tax planning planning options. Considered tax planning could save you a fortune and an IFA is best placed to advise you on your options. Premier IFA will connect you with recommended FCA regulated IFAs in your area for free and impartial advice.
Recommended IFAs are the highest rated advisers in your area with a proven track record for providing independent advice so you can be sure you receive the best possible information. They will provide advice on the 'whole of the market' and not just preferred providers.
Independent Financial Advisers are best placed to provide you with impartial advice on a range of tax planning issues including:
- Making a Will
Making a will and ensuring your loved ones know where to find it will ensure your estate is divided as you intend in the event of your death.
If you have complex financial affairs, you will need financial and legal advice and an IFA should be your first port of call.
- Inheritance Tax Exemptions
The inheritance tax threshold is £325,000 and will remain so until 2014-15 and anything above this threshold will be taxed at 40%. If you think you might exceed the threshold, you may want to gift some of your assets in advance of your death. Certain gifts you make more than seven years before your death will be exempt from inheritance tax.
You will need to get financial advice about which gifts will be exempt from inheritance tax. Making the right decisions at this stage could save you thousands of pounds by not retaining all your wealth until you die which would then be subject to inheritance tax should you breach the exemption threshold.
- Giving Your Home Away
If you want to give your home away to your children or anyone else while you are still alive, there may well be some tax implications.
For instance, if you give your home away but continue to live in it, the beneficiary may still have to pay inheritance tax when you die or possibly even income tax. If you were to sell your home and give the proceeds to your children, they will not have to pay inheritance tax if you live for seven years after you make the gift. An IFA can advise you as to your best options and how to legally avoid paying inheritance tax on your home.
- Giving to Charity
Any gift that you make to a ‘qualifying’ charity will not be subject to inheritance tax. Additionally, if you leave at least 10% of your wealth to a ‘qualifying’ charity, you may qualify to pay inheritance tax at 36% rather than the normal 40% rate.
Please not that a ‘qualifying’ charity is one that is recognised as a charity for tax purposes by HM Revenue and Customs.
- Trusts and Inheritance Tax
You may want to use a trust to pass your assets on to others, in particular your children. If your estate is over the inheritance tax threshold, gifts into the trust may still be subject to inheritance tax.
The rules regarding trusts can be very complex and HMRC advise that you seek professional advice.
- Inheritance Tax Relief For Businesses
You may be able to claim special relief for your business assets such as land, buildings, machinery and shares. It’s possible that these may be passed on free from inheritance tax while you are still alive or in your will.
You should seek advice to see if your personal circumstances will allow you to take advantage of this allowance.