• Contact us
  • About us
  • Digital edition
  • Online archive
Sunday, June 22, 2025
Cumberland and Westmorland Herald
  • News
    Is outsourcing a strategic opportunity amid rising employment costs?

    Is outsourcing a strategic opportunity amid rising employment costs?

    Farms focus on cashflow following SFI scheme closure

    Farms focus on cashflow following SFI scheme closure

    MP asks for Government help over plans to replace M6 bridges

    MP asks for Government help over plans to replace M6 bridges

    Resurfacing work to start in Shap – road to be closed for 21 days

    Resurfacing work to start in Shap – road to be closed for 21 days

    Arrests after drugs raid in Penrith

    Arrests after drugs raid in Penrith

    New Kirkby Stephen shop blends retail with purpose

    New Kirkby Stephen shop blends retail with purpose

    New vicar appointed for churches

    New vicar appointed for churches

    Award for Eden writer

    Award for Eden writer

    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

  • Sport
    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    Is outsourcing a strategic opportunity amid rising employment costs?

    Is outsourcing a strategic opportunity amid rising employment costs?

    Farms focus on cashflow following SFI scheme closure

    Farms focus on cashflow following SFI scheme closure

    MP asks for Government help over plans to replace M6 bridges

    MP asks for Government help over plans to replace M6 bridges

    Resurfacing work to start in Shap – road to be closed for 21 days

    Resurfacing work to start in Shap – road to be closed for 21 days

    Arrests after drugs raid in Penrith

    Arrests after drugs raid in Penrith

    New Kirkby Stephen shop blends retail with purpose

    New Kirkby Stephen shop blends retail with purpose

    New vicar appointed for churches

    New vicar appointed for churches

    Award for Eden writer

    Award for Eden writer

    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

  • Sport
    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Sponsored
This article appears as part of a paid partnership with Armstrong Watson

Can I reduce my family’s Inheritance Tax bill?

by CWH
11 November 2022
in Sponsored
A A
Share on FacebookShare on Twitter

By Sarah Tallentire, financial planning consultant, Armstrong Watson, Penrith

Of all the various taxes levied in the UK, Inheritance Tax is one of the most peculiar.

IHT is often described as the UK’s most hated tax. Former Chancellor Lord Jenkins once called inheritance tax “a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”.

However, the amount of tax it raises for the Exchequer is small: it is worth about one per cent of the total produced by the three main taxes – Income Tax, National Insurance, and VAT.

The vast majority of estates do not pay any Inheritance Tax . For married couples and civil partners who are homeowners with children, Inheritance Tax is usually not an issue until their wealth exceeds £1 million.

Statistics from HMRC show that in 2019/20, only 3.76 per cent of estates suffered the tax. In practice, nearly half of estates will escape Inheritance Tax simply because there is generally no tax on transfers between married couples and civil partners. However, this exemption does not apply to unmarried couples as, with Inheritance Tax there is no such concept as a common-law spouse, and the number of estates now liable is on the up.

Why are more families having to pay Inheritance Tax?

New figures from HMRC show that in 2021/22 Inheritance Tax receipts rose by nearly 14 per cent, with the average Inheritance Tax bill faced by that small minority of taxpaying estates at a value of just over £250,000. One reason for the increase is the fact that the nil rate band is frozen.

Currently, everyone has a tax-free inheritance tax allowance of £325,000 – known as the Nil-Rate Band. The standard Inheritance Tax rate is 40 per cent of your estate over the £325,000 threshold.

The freeze started in 2009 and its term has regularly been extended – the “thaw” is not now due to arrive until April 2026 which will be 17 years! With inflation surging, over three more years of freeze will drag more estates into the Inheritance Tax net.

What can I do to protect against any Inheritance Tax bill?

If Inheritance Tax is a concern for you, there are a variety of ways to reduce its impact on what your children or grandchildren will inherit.

It will not surprise you to learn that with such a misunderstood tax, the starting point is professional advice.

A good independent financial adviser will often work in conjunction with a solicitor. They will ensure that a client’s estate planning is correctly set up, based on their wishes and objectives, and regularly reviewed, especially as the law can change.

For the majority of people there are various approaches that can be taken to mitigate a future Inheritance Tax liability.

Of course, you could choose to ignore it. If there is tax for your family to pay later on so be it. On the other hand, you could choose to spend enough money during your lifetime so that little or nothing is left in your estate. However, this approach may be easier said than done!

If either of these approaches don’t suit you then there are other steps to consider and we discuss these in Our Guide to Inheritance Tax and Estate Planning which can be downloaded from our website – www.armstrongwatson.info/IHT

At Armstrong Watson our quest is to help our clients achieve prosperity, a secure future and peace of mind. We provide bespoke tax planning, financial planning and wealth management all under one roof. Please note, advice on Inheritance Tax-related matters could be provided by a mixture of both our financial planning and tax specialists.

Sarah Tallentire

For further information please contact Sarah Tallentire on 01768 222042 or email sarah.tallentire@armstrongwatson.co.uk

Related Posts

Farms focus on cashflow following SFI scheme closure
Expert advice

Farms focus on cashflow following SFI scheme closure

21 June 2025
Risks and strategies for flexible pension drawdown
Expert advice

Risks and strategies for flexible pension drawdown

15 June 2025
How can businesses combat increased pressure on cashflow and profitability?
Expert advice

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Changes to business rates
Expert advice

Changes to business rates

25 May 2025
Turning 75: the impact on tax-free cash, pension tax relief and death benefits
Expert advice

Turning 75: the impact on tax-free cash, pension tax relief and death benefits

18 May 2025
Overlooked elements that define great outdoor projects
Sponsored

Overlooked elements that define great outdoor projects

14 May 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Is outsourcing a strategic opportunity amid rising employment costs?

Is outsourcing a strategic opportunity amid rising employment costs?

22 June 2025
Award for Eden writer

Award for Eden writer

20 June 2025
MP asks for Government help over plans to replace M6 bridges

MP asks for Government help over plans to replace M6 bridges

20 June 2025
Penrith man admits possessing cannabis twice with intent to supply

Penrith man admits possessing cannabis twice with intent to supply

20 June 2025
Farms focus on cashflow following SFI scheme closure

Farms focus on cashflow following SFI scheme closure

21 June 2025
Arrests after drugs raid in Penrith

Arrests after drugs raid in Penrith

20 June 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2025

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald