Inheritance Tax Planning for Doctors & Dentists

Everyone is allowed to leave a certain sum of money without their loved ones needing to pay tax on it. Without effective inheritance tax planning though, they could end up paying more tax than they need to.

Particularly after years of rocketing house prices, many more people have been caught by the increasing divide between inheritance tax and personal allowance thresholds.

How Much Inheritance Can You Leave Tax-Free?

Currently, everyone can leave up to £325,000 to their beneficiaries tax-free. This figure is set by the government and is called the nil-rate band. Anything above that amount is subject to 40% tax.

Any assets left to your spouse or registered civil partner, provided they are UK-domiciled, are exempt from inheritance tax. On top of this, your partner's inheritance tax allowance is increased by the amount you don't leave to others. This means that, together, a couple can currently leave £650,000 tax-free.

How Can You Avoid or Reduce Your Inheritance Tax Bill?

Whilst your beneficiaries may not be able to completely avoid paying inheritance tax, there are numerous ways you can mitigate how much they do pay. The most important of these is ensuring that you have an up-to-date will.

Transferring assets through the use of lifetime gifts is another way. So too is creating an inheritance tax-efficient fund that enables your beneficiaries to meet any tax liability without affecting the family wealth.

Inheritance Tax Planning with Legal & Medical

To find out how Legal & Medical can help you reduce you and your loved ones exposure to inheritance tax, contact us today or email  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The Financial Services Authority do not regulate tax advice or estate planning. The tax reliefs referred to throughout this website are those currently applying in the United Kingdom to UK Tax Residents. These tax reliefs are liable to change. The value of any tax relief available will depend upon the individual circumstances of the taxpayer.