Inheritance Tax Resources Southampton

Inheritance tax is an issue that many people have to face after the death of a close friend or relative. Taxes are imposed on estates and inheritances, depending on a number of factors. Read through the following articles to learn more about inheritance taxes and find local companies and providers who can help you find what you’re looking for.

Lines Wilson Llp
023 80229111
10 Carlton Crescent
Southampton

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William H Holliday
023 80734229
Oak Haven
Southampton

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Cekim Tax Consultants
023 80653345
11 West Links
Eastleigh

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Ogden & Co Ltd
01329 283036
The Stables Dean Farm Estate
Fareham

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Adtax
01329 237087
3 Quay Side Commerce Centre
Fareham

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David Thomas & Co
023 80366151
94 Oakley Road
Southampton

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Capital Tax Practice
023 80766350
Martins Roost
Southampton

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Optimum Tax Solutions Ltd
07766 827708
Office
Romsey

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Tax Shop Of Fareham
01329 231706
70 High Street
Fareham

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Colin Boon
01983 246766
Prospect Business Centre
Cowes

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Inheritance & Capital Gains Tax

Inheritance & Capital Gains Tax

Inheritance & Capital Gains Tax | Information, Advice on Paying

Even after death there are tax issues to resolve. The most common one is inheritance tax which is a tax payable on the estate of the deceased.

Inheritance tax does not apply to everyone. Currently inheritance tax is only payable if the taxable value of an estate is above £285,000. In the 2007 budget it was announced that the Inheritance Tax Threshold (IHT) will rise from £285,000 to £350,000 by 2010.

Inheritance tax is traditionally a loathed tax that people try to avoid. In the past people tried to give away their money before death to avoid inheritance tax. Many loopholes have now been closed.

There are still some ways that you can pass on certain amounts exempt from inheritance tax either while you are alive or after death. Gifts can be made of up £3,000 per tax year. If someone gets married, they can receive up to £5,000 tax-free from parents and £2,500 from grandparents. Anyone else can give them £1,000 without the gift attracting inheritance tax.

There is a seven-year rule when it comes to making gifts. If you survive for seven years after making a gift, inheritance tax is not payable. This means you can give away more expensive assets to friends and family without them having to pay inheritance tax.

If all of the estate passes to a spouse or civil partner then there is no inheritance tax to pay at all.

You can find more information about exemptions here.

If the estate is over the threshold then there is 40% tax on the excess, it is usually the job of the executor to pay the tax bill and they will have to give a valuation of the assets at the time of death. Inheritance tax must be paid within six months from the end of the month in which the death happened, if payment is made after this then interest will be applied. Sometimes arrangements can be made to pay in instalments.

You can find comprehensive inheritance tax information and forms here.

If you have received an asset as part of a will, for example a property, and you decide to dispose of the asset, you will have to consider Capital Gains Tax (CGT). It is quite common for people to inherit a parent’s house and then want to sell it. Capital Gains Tax is not paid at the time of death but must be paid by you when you dispose of the asset if the property has appreciated in value between the time of inheritance and the point of sale.

You do not pay Capital Gains on all assets; it usually applies to property and personal assets of higher value such as expensive jewellery and paintings. Here is a guide to which assets CGT applies to.

Once you have disposed of any assets then you should report any gain or loss to your local Tax Office. You can either do this through your end of tax year return or by letting the Tax Office known in writing by 5th October following the tax year in wh...

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Inheritance Financial Advice & Information

Financial Advice for the Bereaved

Inheritance Financial Advice & Information | Finances after Death Many bereaved partners and dependents are ill-prepared for both the costs associated with death and managing the financial situation afterwards. If you are at the stage of planning and paying for a funeral you may be shocked by the cost.

For some younger partners, bereavement can create huge financial problems particularly if you have no savings, have children to support and a mortgage to cope with.

If life insurance has been paid then this will help to pay off any debts and replace lost income. However, it is estimated that half of the British population don’t have life insurance. If this is the case then you will need to create a plan for your future financial security.

This section helps you to:
  • Address issues concerning debt, look at what you are spending and includes a budget planner .

  • Understand inheritance tax and find professional financial advice

  • Understand the bereavement benefits you are entitled to.

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