Inheritance Tax

Inheritance Tax planning & thresholds

Inheritance tax is charged on all of your assets that you leave over £325,000. This includes your home, car, investments, savings, material possessions and any life insurance that you have taken out. Inheritance tax is set at 40% regardless of what you, earned and will be taken from your estate when you die. This means that inheritance tax is likely to affect all of us at some stage.

Receiving inheritance

On average people are left around £17,500 as an inheritance. This is usually left to an average of 5 people.

If you receive an inheritance you should carefully consider what you want to do with it. It can be a good idea to invest it so that it grows and you can put it to even better use.

Top up your pension

As we are living longer, more and more of us will find that we are spending a considerable chunk of our lives in retirement. For this reason it can be a good idea to ensure that you have a healthy pension to rely on when you want to retire. Using your inheritance to top up your pension would be a good way to achieve this.

Invest it for your future

Another option for your inheritance would be to invest it into an ISA. This gives you a tax free way to invest and save for the future.

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