Landlords at risk of losing 40% of assets

Published: 17/06/2014

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.

Quick calculations

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.

Value of Estate/Assets Amount taxable Inheritance Tax Bill
£350,000 £25,000 £10,000
£400,000 £75,000 £30,000
£500,000 £175,000 £70,000
£750,000 £425,000 £170,000

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.

Request a callback
to discuss your options
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