With an increasingly ageing population, the Government have proposed that freezing the inheritance tax threshold until 2019 could help people plan better for their future; the freezing is to pay for care costs which will be capped. Families are now being advised to consider their inheritance tax planning as soon as possible. All of these plans and suggestions have been made due to the reform of the social care system.
The current threshold is set at £325,000 and will be frozen at this amount for individuals and for couples it will be frozen at £650,000 until 2015. It has been predicted that these measures will not be popular with the general population because people work hard to save so that their family and loved ones are taken care of and now could just be leaving behind a tax liability.
There are a number of ways in which you can reduce potential inheritance tax bills such as:
- Life Insurance
- Creating a Trust
- Discounted Gift Plans
If you have any concerns or questions involving inheritance tax please call Alexander & Co today on 0161 832 4841. Alternatively please fill our simple online enquiry form and one of our inheritance tax accountants will be in touch promptly.