Sign up to save your podcasts
Or
Share Money Confidence - Ways You Can Pay Less Inheritance Tax
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Money Confidence - Ways You Can Pay Less Inheritance Tax
On this episode of the Money Confidence podcast, Sarah and Georgia talk about the different ways to reduce your potential Inheritance Tax (IHT) bill.
KEY TAKEAWAYS
One way to potentially reduce your IHT bill is to make gifts while you're still alive. Every tax year you have a £3,000 gifting exemption which you can only carry forward one year if you don't use it.
You can also make as many small gifts of up to £250 per individual per tax year, as long as you haven't used another exemption on the same person. So you can't use the £3,000 annual exemption and the small gift exemption on the same person. Each tax year, you can also give a tax free gift to someone who is getting married or starting a civil partnership.
Seek professional advice if you're thinking of making gifts especially if you're making gifts out of excess income.
Getting married can be a way to reduce IHT due to the spouses exemption.
It's important to make a Will and leave assets to the appropriate people.
Leaving money to charity will also reduce your potential IHT bill.
Pensions are usually outside your estate for IHT purposes so you may want to take income or capital from different assets first and leave your pensions untouched as they remain outside your estate for IHT purposes. Seek professional advice to see if this is appropriate for you.
BEST MOMENTS
‘Last Friday we did an hour long episode for our launch but I forgot to press record.'
'If you leave your house to direct descendants such as children or grandchildren, you benefit from the residence nil rate band which is up to £175,000 per individual for this tax year.'
'You can make use of your annual gifting exemptions, make use of your residence nil rate band, use assets which are inside of your estate for IHT purposes first (before accessing your pensions) and/or make gifts to charity. The gifts to charity are IHT exempt and if you gift at least 10% of your net estate to charity then the IHT reduces from 40% to 36%.'
‘That's 4 ways you could reduce your IHT bill. However, you should always seek professional advice as these ways may not be suitable for everyone.'
ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
CONTACT METHOD
IG: https://www.instagram.com/sarah_talks_money/
LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/
Hosted on Acast. See acast.com/privacy for more information.
View all episodes
By Sarah Blyth and Georgia LeggOn this episode of the Money Confidence podcast, Sarah and Georgia talk about the different ways to reduce your potential Inheritance Tax (IHT) bill.
KEY TAKEAWAYS
One way to potentially reduce your IHT bill is to make gifts while you're still alive. Every tax year you have a £3,000 gifting exemption which you can only carry forward one year if you don't use it.
You can also make as many small gifts of up to £250 per individual per tax year, as long as you haven't used another exemption on the same person. So you can't use the £3,000 annual exemption and the small gift exemption on the same person. Each tax year, you can also give a tax free gift to someone who is getting married or starting a civil partnership.
Seek professional advice if you're thinking of making gifts especially if you're making gifts out of excess income.
Getting married can be a way to reduce IHT due to the spouses exemption.
It's important to make a Will and leave assets to the appropriate people.
Leaving money to charity will also reduce your potential IHT bill.
Pensions are usually outside your estate for IHT purposes so you may want to take income or capital from different assets first and leave your pensions untouched as they remain outside your estate for IHT purposes. Seek professional advice to see if this is appropriate for you.
BEST MOMENTS
‘Last Friday we did an hour long episode for our launch but I forgot to press record.'
'If you leave your house to direct descendants such as children or grandchildren, you benefit from the residence nil rate band which is up to £175,000 per individual for this tax year.'
'You can make use of your annual gifting exemptions, make use of your residence nil rate band, use assets which are inside of your estate for IHT purposes first (before accessing your pensions) and/or make gifts to charity. The gifts to charity are IHT exempt and if you gift at least 10% of your net estate to charity then the IHT reduces from 40% to 36%.'
‘That's 4 ways you could reduce your IHT bill. However, you should always seek professional advice as these ways may not be suitable for everyone.'
ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
CONTACT METHOD
IG: https://www.instagram.com/sarah_talks_money/
LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/
Hosted on Acast. See acast.com/privacy for more information.