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As with any tax obligation there is a series of factors that affect your liability and knowing where exemptions apply in the politics of inheritance tax can save you money. As a leading inheritance tax advice service in High Peak we are often asked about exemptions and there are indeed many in this area.
Even your job role can dictate how much you pay with those serving in positions deemed as ‘risky’, such as people working as armed forces personnel, police officers, fire and rescue operatives, paramedics and aid workers, are currently exempt from paying any inheritance tax, if killed in their roles whilst attending an emergency situation. However, it is your marital status that affects your liability further.
Exemptions affecting spouses and civil partners
When you pass away the assets that are left to your husband, wife or registered civil partner are exempt from inheritance tax. However, this only applies if they are living in the UK, with non-domiciled residents, i.e. those who have a permanent home outside of the UK, missing out.
Your partner’s inheritance allowance
The exemption also affects your spouse or civil partner’s inheritance tax allowance, and should the assets left to your partner equate to less than the allowance, the amount left is added to your partner’s. Under current legislation, a UK based couple can collectively leave £650,000 without paying tax, a threshold that is applied automatically upon your death as executors of your Last Will & Testament will supply the relevant documentation to HM Revenue & Customs (HMRC).
Getting inheritance tax advice throughout the High Peak couldn’t be easier, contact Slater Financial today to find out more.
*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*