Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

It is advisable to seek out professional advice for financial planning, to maximise any tax reliefs and allowances you are eligible to receive in order to reduce or avoid being liable to Inheritance Tax. There are a number of ways to avoid Inheritance Tax becoming due, but all should be considered carefully.

It is possible to insure against Inheritance Tax, although this option may be expensive unless you are in good health and relatively young. Inheritance Tax is sometimes due to be paid before you have received any money from the deceased estate. An insurance policy, which is known as a ‘whole of life’ policy, is taken out and written under trust for any heirs. The policy should pay out sufficient funds to cover the Inheritance Tax bill. As the policy is written under trust, it won’t be liable to an Inheritance Tax charge and will be paid before probate is granted.

A deed of variation can be drawn up within two years of the date of death, as long as all beneficiaries agree to the variation. This allows the will to be altered after death, so other parties will be liable for part of the Inheritance Tax bill.

If you have life insurance policies, they will be counted as part of your estate after death and therefore, could be liable to Inheritance Tax. To avoid this, any life insurance policies which you intend to be bequeathed to your heirs should be written under trust. A life insurance policy under trust isn’t counted towards your estate and is paid before probate is granted.

guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.