Inheritance tax avoidance help - who to consult

xylophone

You will probably have some CGT to pay but that is the problem when you tie up all your wealth in property.

CGT doesn't only apply to property (assuming you mean real estate).

https://www.gov.uk/capital-gains-tax

Keep_pedalling

xylophone wrote: »

CGT doesn't only apply to property (assuming you mean real estate).

https://www.gov.uk/capital-gains-tax

True, but it is charged at a higher rate, and unlike equities you tend to have to flog it all in one go, and not spread it over a number of years to take advantage of your annual allowances. You also can't stick it an ISA.

littlebranshill

getmore4less wrote: »

How much are they worth?

You probably have £650k to play with before IHT.

gifting assets away has to be done properly to avoid gifts with reservations.

How did you get £650k? I thought it was anything over £325,000?

Linton

littlebranshill wrote: »

How did you get £650k? I thought it was anything over £325,000?

You get any nil rate band not used by your husband. So if he left you everything you have a double allocation.

Rodders53

littlebranshill wrote: »

How did you get £650k? I thought it was anything over £325,000?

Assumes that none your Husband's IHT exempt allowance was used when his estate went through probate; so you get double to pass on. (True if he left all to you and no other legacies).

If that's not the case, then the numbers will be different.

Keep_pedalling

It would be foolish for you to give away any of you major assets, as you may very well need them to make sure you are comfortable and well looked after in your last years, but if you really want to avoid your estate paying CGT then leave everything over your combined nil rate bands to charity.

As you have no direct descendants, why are you so worried about IHT?

Mojisola

littlebranshill wrote: »

I own 2 properties.

My husband died 9 years ago and we have no children.

Both properties are in my sole name.

When I die I am going to be stung for Inheritance Tax. I need help in sorting out what I can do with the properties now to avoid my estate being hammered with 40% tax.

Apart from the 2 houses I don't have any savings

You do realise that it's not your whole estate that is counted - only the amount above your allowance. As others have said, this could be £650,000 if your husband left everything to you.

Why not sell the house you don't live in and have enough savings to live comfortably?

ManofLeisure_2

le_loup wrote: »

When one has no children, or even when you do, there can be no fairer way of taxation than for your money it to do good for your country when you have no further need of it. Or perhaps the way of the Pharaohs should be the way forward.

Crikey, I can see I'm going to have to mend my ways

Keep_pedalling

ManofLeisure wrote: »

Crikey, I can see I'm going to have to mend my ways

IHT is HMRCs way of telling you you have not spent enough in your lifetime.:beer:

SuperHan

A good accountant will certainly have either sufficient legal knowledge or contacts. Equally a STEP qualified lawyer should be qualified for inheritance tax planning, however as an accountant that does a lot of IHT planning, we tend to lead on the tax planning side and instruct lawyers accordingly.

Who are you planning on leaving your estate to? If you leave it all to charity, there's no IHT to pay...