MS Wealth Management Limited Registered in England and Wales: 04698059

MS Wealth Management Ltd. is authorised and regulated by the Financial Services Authority. FSA no. 454962

• Tel: 01204 366300
• Fax: 01204 366344

What is inheritance tax (IHT)?

Put simply, inheritance tax is a tax on everything you own – your net assets – which becomes payable on your estate when you die.

Your assets may be more extensive than you think.

They could include the following:

• Your home – and any other property you own
• Your investments
• Any insurance policies (not subject to inheritance tax effective trusts) you may hold
• Items such as antiques and other collectables, cars, furniture and valuables such as jewellery.
• Gifts you have made, if you still benefit in some way from them.
  An example would be a home which you still live in, even though you have given it away. Some gifts which you have made during the last seven years – we’ll look at these in detail.

Assets held in certain kinds of trust, from which you still benefit personally .

Who pays inheritance tax and on what?

Domicile is a very important concept in relation to inheritance tax and is determined by the place you have your permanent home. It is different from nationality and residency.

You may only have one domicile. If you are UK domiciled you are subject to inheritance tax on your worldwide assets. If you are classified as non-UK domiciled, you are only liable to inheritance tax on assets sited in the UK.

Inheritance Tax is NOT only for the very well off, if you own a house and have some savings then the likelihood is that at sometime in the future, you might be fortunate enough to inherit some money, then it could easily affect you.

If you and your family have worked a lifetime in trying to get the very best returns on investments, only to find that on death HMRC takes, after allowances, around 40% of the estate, then if you were thinking it doesn’t affect you, please think again, it might.

It’s so important that every one reviews their personal circumstances every year.

So, review your circumstances and find out what your position is. Plan early is the key to avoid this tax.

IHT threshold £325,000.00 (tax year 2010/2011)

If you would like MS Wealth Management to assess your overall net worth, just contact us and we will produce a report that is free of charge .We will also tell you what steps you need to take to be in the best possible position, for you and your family.