Business Property Relief & Inheritance Tax for Beginners!

In June 24, 2015
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An Estate will be subject to Inheritance Tax if on death, it exceeds the Inheritance Tax threshold known as the Nil Rate Band. This is effectively a tax-free allowance and it is currently set at £325,000. Inheritance tax is charged at 40% on everything above this value. This is the same for Businesses!

Thankfully, there are legitimate ways to reduce the amount of Inheritance Tax you are liable to pay, or sometimes even wipe out your Inheritance Tax bill entirely! It is possible to use methods such as BRP (Business Property Relief). This is an INCENTIVE, not a LOOPHOLE! Select companies will qualify for BPR and this means that as long as an Investor holds the shares for at least two years and at the time of their death, the Investments should be exempt from Inheritance Tax. BPR was created in 1976 and it was established to stop death hurting a family business, and to take it out of the Estate for Inheritance Tax purposes. As long as the BPR Investment is held at death, the business can then be passed on to a spouse and be kept in the family with 100% relief from Inheritance Tax.

There are many other different types of Investments that can help with protecting your Business from an Inheritance Tax problem. For example, Gift and Trust arrangements can take up to seven years before they are exempt from Inheritance Tax, but these Investments fall outside of your Estate after just two years.

We can offer advice on all aspects of Inheritance Tax friendly Investments, should they be suitable for you and your needs. Inheritance Tax products may not be suitable for everyone, it really does depend on each individuals circumstances and we always advise on a bespoke basis.

If Inheritance Tax is something you and your family are concerned or worried about, contact our office today to arrange your own free Initial Meeting!

 

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Tax rules can change at any time.

 

Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage. We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

 

The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

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Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

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Telephone: 01489 877547
Email: info@redwoodfinancial.co.uk

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,