Landlords at risk of losing 40% of assets
If you own a buy to let property there is a good chance your assets exceed the Nil Rate Band, leaving you liable for Inheritance Tax (IHT) and at 40% you could see a sizeable chunk of your estate vanish.
According to figures, house prices are increasing by an average of £10,000 a month. In stark contrast the Nil Rate Band – the name for the Inheritance Tax Threshold – remains frozen at £325,000. As a result Inheritance Tax Liability is expected to quadruple by 2018 with one in 10 people liable and landlords are prime candidates.
If your assets are worth in excess of £325,000 then anything over this figure is taxable at 40%. £325,000 may sound like a large figure but a landlord who owns their own house and just one buy to let property is likely to fall on the wrong side of this amount.
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Minimise your IHT liability
There are a number of ways in which you could be able to minimise your inheritance tax liability and the first step is to make a Will.
We understand making a Will may feel a little morbid but for a landlord is an essential part of business and financial management.
Our qualified Wills and Estate Planning team can help you make a Will as well as providing a tailor made service to mitigate any further IHT liabilities.