Inheritance tax: Brits can ‘cut their bill to zero’ – The ‘key’ to long-term wealth | Personal finance | Finance


Express.co.uk spoke exclusively to Finn Houlihan, Managing Director of ATC Tax, about how Britons can “develop good tax-focused financial planning” which can prepare them for the coming. It’s “the key to caring for your wealth for the long term and for future generations,” he said.

Mr Houlihan explained that Britons should be comfortable with the idea of ​​investing.

With inflation at 7% and interest rates on savings accounts not earning even half that amount, money in banks is losing value and as a result people are getting less for themselves. money.

By considering investments, Britons may be able to beat inflation and get the most out of their money.

Mr. Houlihan advises his clients who invest to do so for the long term – more than 10, 15, 20 years.

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He said: “It’s often easy to see volatility in the markets and think it’s a good idea to sell your investments, but we’ve seen that following a correction you usually see a significant rally where investors think they can get a “good deal”. ‘ on an undervalued stock or investment.

“With that in mind, it would be beneficial for you to start saving as early as possible – and save as much as you can afford each month.

“That way you can grow your wealth and maintain it for the long term.

“As part of this process, you need to create an emergency fund that will provide a buffer in times of economic uncertainty – about three months’ salary – so you don’t have to sell your investments when your pockets are tight. .”

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If anyone is unsure about investing, they are advised to seek independent advice.

To ensure that this wealth is passed on to children and grandchildren, individuals should seek advice from an adviser on allowances and gifts they can use to reduce inheritance tax, Houlihan said.

He said: ‘A combination of setting up formal trusts, gifts and using protection as whole life cover can provide a comprehensive approach to reducing inheritance tax on an estate transferred to family members. .

“However, it’s often about finding the right combination of solutions for your particular situation.

“With good tax-focused financial planning, you can often ensure that the inheritance tax bill is reduced to zero.”

Inheritance tax is a tax on the estate (property, money and possessions) of a deceased person.

There is normally no inheritance tax payable if:

  • The value of the estate is below the £325,000 threshold
  • They leave anything over the £325,000 threshold to their spouse, civil partner, charity or community amateur sports club
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