Inheritance Tax

Our guide to Inheritance Tax Planning is split into the following
sections:- 

• An in-depth guide to Inheritance Tax payable on death, exemptions and reliefs
• A series of frequently asked questions with answers
• Details of how we can help you in connection with Inheritance Tax Planning

From October 2007 married couples and civil partners have been able to combine their nil rate Inheritance Tax allowances for deaths on or after 9th October 2007.

This amendment is backdated, so when a surviving spouse (or civil partner) dies on or after 9th October 2007, the estate of both of them will need to be considered together. For example this could have the effect of saving £130,000 (£325,000 x 40%) for a second death in 2009/2010 tax year.  

By this measure, the government are giving married couples and civil partners the same tax saving benefit as that gained by couples who had previously written tax planning wills.

Those with existing tax planning wills (e.g. Nil Rate Band Discretionary Trusts) where both parties are still alive may now wish to consider whether their wills still work for them, or whether they would now prefer simpler ones.

Where one party has already died, and a NRBDT is up and running, these can carry on as they are unaffected.