v THE NEXT HERALD IS OUT ON 15TH MAY v Page 68 • The HERALD • 24th April 2025 ASK A PROFESSIONAL Expert Shares All You Need To Know About Inheritance Tax More and more families are now facing having to pay Inheritance Tax, a leading expert has warned. Steve Bish, of S Bish Estate Planning, said: “With 20 years experience in Estate Planning I’ve seen firsthand how the loss of a loved one can turn our lives upside down - and nothing adds insult to injury like an unexpected Inheritance Tax bill. With property prices on the rise, estates that once wouldn’t have fallen under this tax are now caught in its net. And to make matters worse, the tax has to be paid before you can even apply for a Grant of Probate or Letters of Administration. This leaves families scrambling to raise cash at a time when they’re already hurting.” With that in mind Steve has prepared the below advice which he hopes will help those navigating an inheritance tax issue. What does this tax mean for you? At the moment, Inheritance Tax applies to estates worth over £325,000, with 40% charged on the amount above that threshold. Given the current housing market, more families than ever are being unexpectedly hit with this tax. ere are some exceptions: • If everything is le to a spouse or civil partner, no tax is due. • A residence allowance of £175,000 is available if the family home is passed on to children or grandchildren. • Any unused tax allowance from a late spouse or civil partner can be carried forward, e ectively doubling the threshold. • Leaving 10% or more of the estate to charity reduces the tax rate from 40% to 36%. Despite many hoping for some relief, this year’s budget le the nil rate bands (NRB) unchanged, meaning thousands more families face this steep tax bill when they least expect it. Understanding your tax bill: Calculating Inheritance Tax can be overwhelming. It’s not just about the money in the bank; it includes everything of value that the deceased owned, such as: • Property • Cars • Jewellery and art • Shares and investments • Cash gi s given in the seven years before death Every item must be valued as of the date of death, with the details accurately re ected on HMRC forms. When and how to pay Inheritance Tax: HMRC requires that Inheritance Tax is paid at least 15 working days before you apply for a Grant of Probate. Initially, you must secure an Inheritance Tax reference number - a process that can take up to three weeks. e nal deadline for tax payment is the end of the sixth month a er death, beyond which interest charges kick in. Options when funds are tight: Many families don’t have ready cash available, as banks and investment companies o en won’t release funds until probate is granted- and probate can’t be issued until the tax is paid. Here are a few strategies that might help: • Direct Payment: Ask the deceased’s bank to pay HMRC directly from their account • British Government Stocks: ese can sometimes be used to cover the tax • Instalment Plans: If the estate includes assets like property or shares, you might be able to pay the tax in installments over ten years. (Keep in mind, interest will apply on the outstanding balance.) is installment option can be especially helpful if you’re inheriting a family home that you plan to keep. NFBP Business Support Programme New Forest Business Partnership (NFBP) have a really useful programme of business support and networking events, open to everybody and aimed at providing training for local businesses across a variety of essential skills. e programme includes a mix of both online and in person events - and many of them are free of charge. New Forest Business Support Hour: Join in an informal one hour networking meeting – an opportunity to update each other on how your businesses are progressing, to meet new people and to ask each other questions in a relaxed setting. You do need to book your FREE place by 3pm on the day. You will then receive an email before the meeting starts with the Zoom meeting ID and password to enable you to join the meeting online. e next sessions are taking place on Wednesday 30th April, Wednesday 7th May, Wednesday 14th May and Wednesday 21st May, 4pm–5pm. Other NFBP events: Business Skills Workshop on Cyber and IT Skills at Balmer Lawn Hotel in Brockenhurst, on Thursday 8th May, 11am–1pm, £9. LinkedIn Local New Forest meet up at Lymington Golf Centre on Tuesday 13th May, 12noon–2pm, £19. Co ee Morning at Tile eld Equestrian in Brockenhurst on Thursday 15th May, 10.30am–11.30am, £5. Marketing Masterclass on Photography at spudWORKS in Sway, Tuesday 20th May, 9.30am-11.30am, £25. Lunch & Leads at Hockley’s Farm Shop in South Gorley, Thursday 22nd May, 12noon–1.30pm, £21. For more information and to book a place on any of the above events please visit: www.n p.org.uk
RkJQdWJsaXNoZXIy MTIyNzI=