Hargreaves Mounteney Solicitors

Law Made Simple

It is important to us that our clients have every confidence in the integrity of our advice and expertise. Going to law, whether in a straightforward personal action or a complex corporate dispute, can often prove an anxious and uncertain time - not least, because of the possible costs involved.

For this reason, we ensure:

that our explanations are simple, clear and concise
that our advice and range of fees are as good, if not better, than any available
that we cause no delay in pursuing our clients’ interests
that in most cases we work to fixed-fee terms
that we are readily available at all times
that we are scrupulously polite in communications
that our practice and principles are based on the integrity of the Christian ethos

Benefit your children,

not the Tax Man

Recent budgets have left the Inheritance Tax (IHT) rules largely unchanged. The IHT allowance is currently £325.000, which means that married couples can leave a combined total of £650,000 without their heirs having to pay IHT. These allowances provide good opportunities to save tax. Simon Hughes at Hargreaves Mounteney comments: “In fact, the current depressed economic conditions make it the perfect time to reassess personal tax planning, particularly when it comes to IHT. Married couples can look to gift £325,000 each into lifetime trusts before they die. As long as they then survive for seven years, the nil-rate allowances will be reinstated thereby enabling the family home to pass down tax free to the children, provided the value of the home falls within the combined threshold available to married couples. At the same time, the assets held by the lifetime trusts should all fall outside of the IHT net provided the trusts have been set up in a way that avoids the gift with reservation rules. So, with careful planning, hard earned family wealth can be passed down to the next generation without IHT at 40% ending up in the Chancellor’s pockets. The important point is to act now to set the seven year period running.” Trusts can be used in other ways to shelter wealth from the tax man. One of our clients recently inherited a substantial sum under his father’s will. By preparing a Deed of Variation under which the inheritance passed into trust several tens of thousands of pounds in Inheritance Tax have been saved. There is a strict deadline for varying a Will in order to achieve tax savings: the variation must be carried out within two years from the date of death. In addition to this kind of tax planning there are other ways in which the Inheritance Tax bill can be minimised, particularly in relation to the family business and lump sums received under pension arrangements. By taking good advice from Hargreaves Mounteney on the opportunities available, considerable amounts of tax can be saved thereby allowing family wealth to pass down to your heirs rather than the Tax Man. If you would like help in relation to saving IHT or any other issue please email or call Simon Hughes on 0161 440 9901. .