Tax & Estate Planning

Inheritance tax is universally disliked and is probably the only voluntary tax you will have to pay. There are people who have worked hard, paid income tax, paid capital gains tax and are then subject to the most unfair tax of all, on death.

Is it any wonder that people want to reduce or even avoid paying ‘death duties’? Please note, we have called Inheritance tax a voluntary tax because with the right planning inheritance tax can be reduced or even avoided.

At CBK Wales, we will explain how to help your children inherit more and give them the best future possible and allow them to inherit what you have worked hard to build up over your lifetime (would you want the Government to have any more of your hard earned assets?).

Inheritance tax is often a complicated subject which can leave family members and loved ones paying significantly more in tax than necessary. For us, it remains a voluntary tax and we work with our clients to ensure that their hard work passes from one generation to the next.

CBK Wales provide advice on the following inheritance tax and estate planning options:

  • Gifts 

  • Discounted Gift Trusts 

  • Gift & Loan Trusts 

  • Enterprise Investment Schemes 

  • Business Property Relief Schemes 

  • Alternative Investment Market Portfolios 

  • Wealth Preservation Accounts 

  • Pension Funds 

  • Whole of Life Assurance


Exactly what is Inheritance Tax?

It is a tax which applies to an individual’s total worldwide assets on their death. However, not all of an estate is taxed. The current nil rate threshold is £325,000 per individual and the current rate of inheritance tax is 40% on everything above this. Potentially, this could be the largest amount of tax your children will ever pay. 

Inheritance Tax Exempt Arrangements

You can look to reduce any IHT liability by giving consideration to gifting directly to family members or you can use a range of inheritance tax efficient trusts. You can also consider a number of IHT exempt investments or alternatively make provision for your children to be able to pay any IHT tax bill through a Whole of Life Assurance policy. You could also consider making gifts to charities or political parties thereby, taking advantage of an exemption from inheritance tax. It is also important to consider a less well known option, which is where you make regular gifts of income, out of income that is not required to support your current standard of living.

You have so many options available to you to avoid ‘the voluntary tax’ that you may well need our advice and of course, we would be more than able to talk you through the most suitable options for you and your family.

The Financial Conduct Authority does not regulate will writing, inheritance tax planning and most forms of buy to let mortgage.