Posts tagged “inheritance tax”

Latest figures show that charitable donations left in Wills increased by more than 60% last year. 
More than half of people in the UK don’t have a Will and only three out of 10 people say they have an up-to-date Will. During the pandemic 7% of people made or updated their Will

Why leave gifts to charity? 

Many people are leaving tax-free gifts to charities in their Wills to reduce the amount of inheritance tax (IHT) to be paid on their estate when they die. 
Gifts to charitable causes are tax-free, and if you donate 10% of your estate to charity, the amount of inheritance tax due will be reduced from 40% to 36%, above the £325,000 tax-free threshold. 
Many grieving families spend a long time completing detailed paperwork to report the value of a loved one's estate, even when there’s no inheritance tax (IHT) to pay. 
Experts say the reporting requirements for possible inheritance tax bills are too complicated, not fit for purpose, and are overdue for reform. 
You can find templates for Wills easily. They can be downloaded from the internet and bought in stationery shops. 
Before you decide to write your own Will, here are some things to think about. 
Two out of three people in the UK risk having strangers make decisions about who benefits from their estate after they die. 
A survey by Remember a Charity has found that 68% of UK adults haven’t made a Will
Many people put off writing their Will because the have made assumptions about when they should do it and who will inherit.  
Here are just some of the reasons. 
Inheritance tax (IHT), normally at 40%, affects estates worth more than £325,000. The value of your estate is made up of property, money and possessions, after any debts have been settled. 
A study by the financial services company, Canada Life, says Her Majesty’s Revenue and Customs (HMRC) collected £5.4billion of IHT in the financial that ended in April. 
This is an increase of £200million on the previous year and £600million more than in 2017. The study predicts that the amount collected is likely to rise to £10billion by 2030. 
Older hand writing the word tax
Whether you’re just starting your business or thinking about retirement, it’s well worth spending some time to plan what you would like to happen when you die. 
What type of business do you have? 
If you are a sole trader or you control all of the shares in your company, you don’t need to consult anyone else.  
However, as a partner or a shareholder in a limited company, you will need to take your partnership or shareholders' agreement into account. If you want to make changes you will need to agree the new terms with the other people involved.ick on this text to edit it. 
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