Dawn Joughin, who is a Trustee of Age UK Mid Mersey, would like to urge clients with an estate liable to Inheritance Tax to review their wills in the light of the changes to the Inheritance tax regime in the recent budget.
From 6 April 2011 it is possible to help local charities and reduce the amount of Inheritance Tax paid to the Treasury. The current taxable rate of 40% will be reduced by 10% for individuals who leave at least a tenth of their estate to charity as part of a new drive to boost legacy giving to charities and the arts.
Inheritance Tax is currently charged at 40% on estates worth more than £325,000 (the current nil rate band which was again frozen in the budget). IHT is also levied on assets transferred in the preceding seven years before death.
George Osborne revealed in the budget, that a 10% discount would be made on the current taxable rate of 40%, meaning an actual reduced tax rate of 36% overall. In the last year, IHT was paid on a 15,000-16,000 estates in the UK.
Dawn also advises it is prudent to review wills on a five to ten year cycle in any event, to take into account family and lifestyle changes.
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