As house prices continue to rise, it’s time to start thinking about inheritance tax.
According to the country’s biggest lender, the Halifax – now part of the Lloyds Banking Group – strong demand for homes combined with fewer properties on the market, pushed up prices by another 1.1% in November 2013.
Economists predict that low interest rates and the return of 95% mortgages, will see yet more people invest in bricks and mortar in 2014, pushing prices up further.
It was the 10th successive monthly increase – and while that’s good news to all home-owners, it does have implications when it comes to leaving property to loves ones.
Barringtons managing director Phil Wood said: “People start to pay inheritance tax on assets, such as property or money, worth more than £325,000.
“While the boom of yesteryear remains a long way off, it’s worth seeing one of our specialists to arrange your finances and put yourself in a tax efficient position.”
As indicated in his Autumn Statement, the Chancellor aims to keep pace with rising property prices and start collecting millions more in inheritance tax (IHT).
The sums predicted to be raised through IHT between this tax year (2013-14) and 2017-2018 has risen from £18.4bn to £21.4bn.
People can avoid paying more than they legally need to by, for example, ‘gifting’ money each year or moving wealth into a family trust.
IHT is a complex area and Barringtons has experts who can unravel it and ensure you maximise your estate and all you have worked for.
Call us on 01782 713700 for help on inheritance tax matters.