How to reduce iinheritance tax in Manchester
When you are no longer around, but leave your next of kin valuables and assets for a total value of more than £325,000, your estate will be subject to the UK inheritance tax of 40%. If your estate is worth less than £325,000 minimal tax planning is needed, and this article probably isn’t that relevant for you. Just make sure that you have counted everything, so your next of kin won’t have any unpleasant surprises on top of your passing.
If your estate is worth more than £325,000, you should continue reading this article on how to reduce Inheritance tax in Yorkshire, Manchester, London or any other region of the UK. The reason why we highlight these cities is because property here alone often go above the threshold of having to pay inheritance tax.
The most effective way to reduce Manchester property inheritance tax
Proper tax planning extends beyond your life time. Not having made sure that your next of kin have the sufficient funds to pat the 36-40% inheritance tax if when taking over your estate can mean that they will be forced to sell the property you leave them — In many cases their childhood home. To make sure this won’t be the case, you should make sure that your estate is balanced, so the liquid and easy transferable assets can pay the tax bill of the property. However this alone does not reduce inheritance tax in Yorkshire or the rest of the UK.
To effectively reduce Yorkshire property inheritance tax, you should consider investing in a good tax specialist to help you set up a trust to hold and safeguard valuable assets and property for your next of kin. Trusts are the most effective *legal* way to reduce London property inheritance tax, because the property will be owned by the trust and not by a taxable individual. In practice that means that the property is virtually tax-free for as long as it’s held by the trust. If your next of kin is a minor at the time of your passing, the trust can safe keep the property and other assets unit l the intended heir turns 18.
A trust is also a very effective way to reduce property Inheritance tax in the UK, as well as avoiding capital gains tax. That means that the assets and property can be fully protected against taxation until your heir is old enough to decide what to do with the inheritance.
For more information about improving your tax strategy, contact taxation trust specialist, Issac Qureshi, via the form below.