Prime Time Financial

Tax is rarely simple, but here are some things to consider to get an idea of your Inheritance Tax (IHT) liability.

This will not give you a definitive answer, and makes certain assumptions which may not be valid for you including that you are the sole owner of assets and liabilities, that you have made no gifts subject to (or potentially subject to) IHT in the last 7 years, and that only your own Nil Rate Band is available.

Assets - add the following

• The value of your property
• The value of your car
• The value of your bank account and savings
• The value of your investments
• The value of any life assurance policies payable to your estate (not written in trust)
• Other assets

Liabilities - subtract the following

• Any outstanding mortgage
• Credit card owings
• Other loans

Value of your Estate - the result of the above

Nil Rate Band - subtract the following

• £325,000

The remaining amount is likely to be subject to Inheritance Tax at 40%.

For a more thorough analysis of your situation Contact Us.

See our Video Introduction to Inheritance Tax and More Articles on Estate Planning and Inheritance Tax.

The Financial Services Authority do not regulate Will Writing, Loans, Credit Cards, or some forms of Mortgage, Tax Advice, Offshore Investments, Estate Planning.

Last reviewed: 31st December 2010