Williamson Keeping it in the family Louise Somerset, Partner at Smith & Williamson in Bristol looks at how planning can help families retain their wealth. ES,000 to friends/relatives on their wedding (depending on your relationship) and people with more income than they spend could look at making regular gifts out of the excess. Where you were born is also a factor: individuals born outside the UK who have The government can change the tax rules at every budget (and governments may change) and it is difficult to protect one's assets for the future. We all want to pass on our wealth when we die, but HMRC may take a slice of anything over approximately E475,000 and for many families this can result in a substantial not tived here for more than 15 years will not necessarily be liable to tax on their non-UK assets, and they may also be able to take advantage of the benefits of an overseas trust. The families of UK citizens who die after they have permanently retired overseas may also face a lower tax bill Tax planning is more restricted than in the past, but there are specific reliefs for certain assets and it is worth sitting down with a specialist and looking at these. For instance, shares in a family business, a portfolio of shares in AM listed companies, agricultural property or woodlands can all be passed on without inheritance tax in some circumstances. tax bill after a death. The solution will be different for each Everyone is different and spending a little time looking at your own situation with a tax advisor can keep many thousands of pounds in the hands of your family, helping to give you peace of mind. individual and family depending on their circumstances, but the most important advice is to think about it early. You can effectively make inheritance tax free gifts of up to £325,000 every seven years, so if you have substantial wealth it may be preferable to ensure your family benefit in your lifetime, rather than being lumbered with a large inheritance tax bill after your death. There is also the opportunity to transfer any amount tax free, but this relies on you living for seven years after the gift. If you do not, a tax bill will arise reducing each year you survive beyond three years. If you own valuable works of art or a 'heritage' property, it may be possible for your heirs to claim exemption from inheritance tax, provided certain undertakings are given, and gifts to charity can reduce the rate of inheritance tax. For more information, please contact: Louise Somerset, Partner Private Client Tax Services Smith & Williamson LLP Making a Will is important, as is revisiting it regularly, and ensuring that it is drafted in such a way that it does not encumber your loved ones with a hefty tax bil. t: 01242 50 6030 e louise.somerset@smithandwiltiamson.com You can give away E3,000 a year tax free and make gifts of between E1,000 and Inheritance tax and estate planning briefings You are invited to attend one of our complimentary briefings to hear from our tax, financial planning and investment experts who will highlight some of the benefits of estate planning and how this can be undertaken. 29 October, 10am- 1pm at The RWA, Bristol 7 November, 10am-1pm at Manor By The Lake, Cheltenham Lunch will be provided at each briefing. For more information and to book your place, please contact Jessica Thompson on 0117 376 2368 or email jessica.thompson@smithandwillamson.com Capital at risk. The value of investments and the income from them can fall as well as rise and the investor may not receive back the original amount invested. smithandwilliamson.com Smith & Wilamson is an accountancy, investment management, financial planning and tax group with a network of 12 UK offices offices: London, Belfast, Birmingham, Bristol, Cheltenham, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. By necessity, this briefing can only provide a short overview and it s essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. The tax treatment depends on the individual ciroumstances of each dlient and may be subject to change in future. Smith & Wiliamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range off investment business acthvities. A member of Nexia International. Smith & Wlamson Financial Services Limited Authorised and regulsted by the Financial Conduct Authority. Smith & wiiamson Investment Management LLP Authorlsed and regulated by the Financial Conduct Authority The Financial Conduct Authorty does not regulate the accountancy and tax advice services provided by Smith & Wilamson LLPT Williamson Keeping it in the family Louise Somerset, Partner at Smith & Williamson in Bristol looks at how planning can help families retain their wealth. ES,000 to friends/relatives on their wedding (depending on your relationship) and people with more income than they spend could look at making regular gifts out of the excess. Where you were born is also a factor: individuals born outside the UK who have The government can change the tax rules at every budget (and governments may change) and it is difficult to protect one's assets for the future. We all want to pass on our wealth when we die, but HMRC may take a slice of anything over approximately E475,000 and for many families this can result in a substantial not tived here for more than 15 years will not necessarily be liable to tax on their non-UK assets, and they may also be able to take advantage of the benefits of an overseas trust. The families of UK citizens who die after they have permanently retired overseas may also face a lower tax bill Tax planning is more restricted than in the past, but there are specific reliefs for certain assets and it is worth sitting down with a specialist and looking at these. For instance, shares in a family business, a portfolio of shares in AM listed companies, agricultural property or woodlands can all be passed on without inheritance tax in some circumstances. tax bill after a death. The solution will be different for each Everyone is different and spending a little time looking at your own situation with a tax advisor can keep many thousands of pounds in the hands of your family, helping to give you peace of mind. individual and family depending on their circumstances, but the most important advice is to think about it early. You can effectively make inheritance tax free gifts of up to £325,000 every seven years, so if you have substantial wealth it may be preferable to ensure your family benefit in your lifetime, rather than being lumbered with a large inheritance tax bill after your death. There is also the opportunity to transfer any amount tax free, but this relies on you living for seven years after the gift. If you do not, a tax bill will arise reducing each year you survive beyond three years. If you own valuable works of art or a 'heritage' property, it may be possible for your heirs to claim exemption from inheritance tax, provided certain undertakings are given, and gifts to charity can reduce the rate of inheritance tax. For more information, please contact: Louise Somerset, Partner Private Client Tax Services Smith & Williamson LLP Making a Will is important, as is revisiting it regularly, and ensuring that it is drafted in such a way that it does not encumber your loved ones with a hefty tax bil. t: 01242 50 6030 e louise.somerset@smithandwiltiamson.com You can give away E3,000 a year tax free and make gifts of between E1,000 and Inheritance tax and estate planning briefings You are invited to attend one of our complimentary briefings to hear from our tax, financial planning and investment experts who will highlight some of the benefits of estate planning and how this can be undertaken. 29 October, 10am- 1pm at The RWA, Bristol 7 November, 10am-1pm at Manor By The Lake, Cheltenham Lunch will be provided at each briefing. For more information and to book your place, please contact Jessica Thompson on 0117 376 2368 or email jessica.thompson@smithandwillamson.com Capital at risk. The value of investments and the income from them can fall as well as rise and the investor may not receive back the original amount invested. smithandwilliamson.com Smith & Wilamson is an accountancy, investment management, financial planning and tax group with a network of 12 UK offices offices: London, Belfast, Birmingham, Bristol, Cheltenham, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. By necessity, this briefing can only provide a short overview and it s essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. The tax treatment depends on the individual ciroumstances of each dlient and may be subject to change in future. Smith & Wiliamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range off investment business acthvities. A member of Nexia International. Smith & Wlamson Financial Services Limited Authorised and regulsted by the Financial Conduct Authority. Smith & wiiamson Investment Management LLP Authorlsed and regulated by the Financial Conduct Authority The Financial Conduct Authorty does not regulate the accountancy and tax advice services provided by Smith & Wilamson LLPT