Now ‘is a good time to look over inheritance tax planning’

Posted 09/03/2010

As people in the UK get prepared for the end of the financial year, this could be a good time to look over your inheritance tax planning.

This is the advice of the Telegraph’s financial expert Beverley Lavin, who said that organising your finances could save your relatives from losing out on large parts of their inheritance due to the government’s tax system.

She pointed out that each individual can give away £3,000 each year in capital to beneficiaries outside their estate without falling victim to inheritance tax charges, while gifts of more than this could also be allowed if they fall under the normal expenditure from income regulations.

Ms Lavin also highlighted the changes to inheritance tax regulations which took place in 2007 as being beneficial when it comes to leaving gifts.

Where previously, the estates of married couples were taxed at 40 per cent on anything more than £300,000 when both parties died, their two allowances can now be added together by the beneficiaries, leading to potentially significant savings.

This is to increase to a maximum of £700,000 in 2010.