With an inheritance tax rate (IHT) of 40%, the UK has one of the highest rates of estates taxes in the world. It’s crucial to keep on top of your potential exposure to IHT by making sure your will and any succession plans for your business are fully up to date.

At Wilson Wright, our approachable, highly experienced team is ideally placed to help you and your family maintain and grow your wealth.

We can advise you on numerous ways to reduce your IHT liabilities, and we’ll work with you to understand the best solution for your specific circumstances, including:

• Gifting assets to make the most of gift exemptions and the potentially exempt transfer rules
• Transfers between spouses to equalise estates and benefit from the capital gains tax “uplift” at death
• Acquiring IHT effective investments, such as shares in family businesses
• Taking advantage of the residential property nil rate band
• Using Trusts whose assets fall outside the IHT estate

The key to effective estate planning is to act early. Trusts still have an important role in financial planning for families, but they are taxed very differently. It’s important to understand this and any issues it may cause.

Trusts have also historically played a critical role in protecting offshore assets of non-UK domiciles from exposure to UK taxes, though a recent overhaul of the legislation is likely to result in an increased exposure for those who have been UK resident for an extended period (10+ years). Those affected by the new rules should take advice as early as possible to determine whether any steps can be taken to mitigate their exposure.

Our team can help you understand these options and how they may benefit – or complicate – your situation.