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A specialist service from Sovereign Wealth – Rob Sutherland

At Sovereign Wealth, we specialise in Inheritance Tax (IHT) and Estate Planning.

Estate Planning is not just the concern of the ‘Landed Gentry’. IHT receipts have increased as a share of GDP since 2009-10, mainly due to rises in asset prices. Residential property makes up the largest share of most estates and the average have risen by more than 30* per cent in that period. The rise also reflects a significant fiscal drag as the IHT threshold has remained at £325,000* since 2009.

When you die, ensure you don’t make HMRC the largest beneficiary of your estate! Careful and timely advice can avoid tax bills of up to 40% on assets over the threshold of your estate.

* How Inheritance Tax works: thresholds, rules and allowances,  https://www.gov.uk/inheritance-tax February 2024

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HM Revenue & Customs collected £7.2bn in IHT revenues in 2023/24 alone.

Source: How Inheritance Tax works: thresholds, rules and allowances,  https://www.gov.uk/inheritance-tax February 2024

At Sovereign Wealth, we specialise in Inheritance Tax (IHT) and Estate Planning.

Estate Planning is not just the concern of the ‘Landed Gentry’. IHT receipts have increased as a share of GDP since 2009-10, mainly due to rises in asset prices. Residential property makes up the largest share of most estates and the average have risen by more than 30* per cent in that period. The rise also reflects a significant fiscal drag as the IHT threshold has remained at £325,000* since 2009.

When you die, ensure you don’t make HMRC the largest beneficiary of your estate! Careful and timely advice can avoid tax bills of up to 40% on assets over the threshold of your estate.

* How Inheritance Tax works: thresholds, rules and allowances,  https://www.gov.uk/inheritance-tax February 2024

What is Inheritance Tax (IHT)?

IHT is effectively a tax on your wealth and is payable to Her Majesty’s Revenue & Customs (HMRC) on money or possessions you leave behind when you die.

If you plan to pass on assets or money after you die, your heirs could face a tax bill of up to 40% of your estate. Your estate is defined as your property, savings and other assets after any debts and funeral expenses have been deducted. You can reduce or avoid IHT in a number of ways. There's a tax-free allowance, and you can also give away a certain amount of your money during your lifetime, tax-free and without it counting towards your estate.

Everyone in the 2023-24 tax year has a tax-free inheritance tax allowance of £325,000 – known as the nil-rate band. The allowance has remained the same since 2009. The standard inheritance tax rate is 40% of anything in your estate over the £325,000 threshold. There is currently a further Residential nil rate band of up to £175,000.

For example, if you leave behind an estate worth £500,000, which does not include property, the tax bill will be £70,000 (40% on £175,000 – the difference between £500,000 and £325,000). If you want to calculate your potential IHT bill either contact us for a No-obligation assessment or use the HMRC Calculator here

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on the individual circumstances.
Working for you

How Can We help Mitigate IHT?

Are you worried about Inheritance Tax?

Contact Rob Sutherland, Sovereign Wealth, today on 0116 2220372 for a no-obligation initial consultation and get an inheritance plan tailor-made for you.

Rob Sutherland is an Advisor of Sovereign Wealth Ltd.

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Sovereign Wealth Limited is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website www.sjp.co.uk/products. Sovereign Wealth is a limited company registered in England and Wales, Number 07115386. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.