If not paid enough attention, there are chances tax can cost hundreds of pounds to the relatives and loved ones in the event of anyone’s death. Though you can get a lot of details on the HMRC Inheritance Tax from any of the accountants in Wirral, the following information will give an overview of the affairs in question.
The inheritance threshold
This is the legal limit set by the HMRC exceeding which the tax needs to be paid by the people receiving the estate of the deceased.
- An individual: The threshold is set for the tax at £325,000 exceeding which, a person is liable to pay the tax as mandated by the governing office.
- People in a civil partnership or married or widowed: The inheritance tax threshold is set to be at £650,000 between the individuals involved.
- Single people: For people who are single, the inheritance tax threshold is set to be at £325,000.
It must be taken into account that from 2017, an allowance of £175,000—applicable only on properties—is phased, which enables anyone to leave his/her house to the grandchildren or children, tax-free.
Payment of HMRC Inheritance Tax
One of the major reasons many people require the help of the professional accountants is that there are numerous rules that oversee the tax. There are instances when one can make the payments in installments; there are also ways where one can meet the tax amount by transferring the custody of certain possessions to the Crown.
When the tax cannot be paid in installments, it is due as any of the following.
- Chargeable lifetime transfers: For this, the tax is due after the six months of the transfer of the property. It must be understood that it is due only by the end of April the following year, if the transfer happened between 6 April and 1 October.
- Potentially exempt transfers: If the transferor suffers death within 7 years after the transfer has been made, the tax is due within six months from the date of the demise of the transferor.
- Estates: The tax must be paid by the individual/individuals representing the person once the IHT account is sent to the HMRC and is takes time to sort the estate, its liabilities and all assets.
The tax must be paid before the profits are distributed to the beneficiaries. This implies that the beneficiaries of the estate must resort to a different means to pay the tax. Like most accountants would advise, the best way is to take a loan in order to meet the tax payable.
When it comes to delivering exceptional accounting and tax related advices and consulting services, DNS associates have created a name and reputation for themselves. They are adequately experienced and fortified with the necessary talent and professionals to meet whatever requirements a client may need from them including HMRC Inheritance Tax payment support. It is their ability to understand various processes and systems when it comes to tax and accounting to leverage the same for the benefit of the clients that makes them the best in the business. They are reliable and committed professionals and this makes them one of the best accountants in Wirral.