subject: Inheritance Tax And Capital Gains Tax [print this page] Capital Gains Tax is a tax levied on the profit you make when you sell or dispose of an asset. An asset can be like a property or shares. If the asset one inherits increases in value between the date of the deceased's death and the date one disposes it, the increase is a 'capital gain'. And hence, the Capital Gains Tax is levied. The tax is levied on the gain you make after disposal of the asset and not on the amount of money you receive for the asset.
You usually dispose of an asset when you sell it, gift it to someone else, transfer it to someone else, exchange it for something else or receive compensation for it.
No person wants to more tax than is needed. This is where our expertise comes in. We can advice you on minimising your capital gain tax liabilities.
Inheritance Tax (IHT) is a tax levied on an individuals estate when he or she dies. Estate means the value of an individuals possession they leave behind which includes everything from cash to shares to the house. It also includes gifts made during a persons lifetime. The threshold limit is 325,000 (Nil Rate Band) for 2012-13. Therefore an estate doesnt have to pay Inheritance Tax up to the threshold limit. The tax is payable at 40 per cent on the amount over this threshold. Fortunately, IHT, though a complicated area, is one of the most avoidable taxes. There are a number of ways of reducing or perhaps even eradicating altogether your liability to IHT after this threshold. A professionally prepared Will, with proper tax advice is the best ways to reduce your IHT liability. And this is precisely where we can advice on the best way to retain your wealth with proper Inheritance Tax planning. You can prepare your Will and Testament with our professional and proficient guidance. Contact us now for the various Will forms.
