Inheritance Tax

What is inheritance tax?

In its simplest terms inheritance tax is applied to all of your net assets and becomes payable on your estate when you die.

This can be applied to a range of things including:

• 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 from which you are still receiving some form of benefit e.g. a home that you have given away but still live in.

Who pays inheritance tax and on what?

It is important to understand the fact that if you have any savings or own a home then you are more than likely going to be affected by inheritance tax. It is not something that is only applied to those who could be deemed wealthy, so you should make sure you understand your own circumstances.

The assets that will be subject to inheritance tax will depend on where your permanent home is located. If this is in the UK then you will be subjected to inheritance tax on all of your assets, no matter where they are situated around the world. If, on the other hand, your main residence is overseas then you will only be subject to inheritance tax on your UK based assets.

The current threshold for inheritance tax is £325,000 for the 2010/2011 tax year.

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.

Levels and bases of and reliefs from taxation are subject to changes and their value depends on the individual circumstances of the investor.