Orchard Independent - Financial Advisers in Edinburgh
Call us on 0845 145 0037
We'll call you

Orchard Independent Shop Front

Investment Enquiries.

Tax Planning

Inheritance tax is not just for the rich

With the mention of Inheritance Tax, most people simply dismiss the possibility that their estate could ever
be liable, assuming it is a tax paid only by the rich…

…this is far from the truth.

Take a moment to add up the value of all your assets - your home, personal possessions, savings, investments, life assurance and even your car…

…if this adds up to more than £325,000 - on your death, the taxman will deduct 40% tax from the value of any assets over this figure that you will pass on!.

So, as you can see - this is a very real tax and can affect more people than it would first appear - and at a rate of 40% for everyone, it can be very costly for those inheriting.

Assessing your Inheritance Tax liability

The inheritance tax Nil Rate Band stands at £325,000 for the 2016/17 tax year, which basically means that if the value of your estate (all your possessions, including your house) exceeds £325,000 - then your heirs may have to pay tax on everything above this at a rate of 40% when you die.

George Osborne revealed in July 2015's Summer Budget that he'd scrap the duty when parents or grandparents pass on a home that is worth up to £1m (£500,000 for singles). This will be phased in gradually between 2017 and 2020.

Your house is the most obvious asset, but there may be many others, for example savings and investments, pensions, jewellery, collectibles, as well as other items of value you own including a business. In addition, there are other items which may be chargeable to IHT which you need to consider.

How do I mitigate Inheritance Tax?

There are now many options to help you reduce or even eliminate your potential inheritance tax liability altogether and as everybody's circumstances are different, effective inheritance tax planning requires a tailored solution, which is where we can help.

There are a number of basic steps you can take to secure your family’s inheritance:

■ Order your finances tax–efficiently
■ Make a Will
■ Value your assets
■ Transfer assets
■ Understand your pension death benefits

So, if you want to ensure that your assets go to the people or charities you want them to go to, you need to plan your inheritance carefully and as Independent Financial Advisers, we can explain what the most suitable options are for your individual circumstances.

Points to consider

■ How much inheritance tax would your estate have to pay if you were to die today?
■ What legacy do you intend to leave behind for those who follow?
■ Have you used all of your inheritance tax exemptions?
■ Does your Will make the best use of the inheritance tax provisions?
■ How sure are you that any gifts you have made to avoid inheritance tax are effective?
■ Do you wish to mitigate inheritance tax but need your investment income?
So, if you feel you could be liable for IHT, independent financial advice could save your estate and your heirs a great deal of money.

Contact us now for a confidential discussion.


Orchard Independent Ltd is an appointed representative of TenetConnect Services Ltd which is authorised and regulated by the Financial Conduct Authority. TenetConnect Services Ltd is entered on the Financial Services Register (http://www.fca.org.uk/register) under 150643.

Orchard Independent Ltd.  12 Dalziel Place, Edinburgh, EH7 5TR. Telephone - 0131 620 6202.

Registered in Scotland - Company No. SC355263

The guidance and/or advice contained within this website is/are subject to the UK regulatory regime and is/are therefore primarily targeted at consumers based in the UK.

Director - Jon Carter