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A change to inheritance tax

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Brian G. Lonis & Co work hard to ensure we remain up to date on the latest rules regarding various types of tax. As a result we can provide the best services for our clients. It also secures our place as the top provider of tax returns Harringay has. If you need help, we are the team to call on.

Inheritance tax threshold

Tax returns HarringayThe UK government charges tax on estates when they have values over a certain threshold. Currently this is £325,000. Any amount over this is liable for a 40% tax. So, for example if an estate has a £400,000 valuation there will be £75,000 to pay tax on. This will total £30,000.

When claiming inheritance it is important to complete the right forms. You must return the IHT205 form even if the estate has a value under £325,000 and there is no tax to pay. If there is going to be tax to pay you need to complete the IHT400 form.

Due diligence

The thing with inheritance tax is there are several ways people can reduce the value or increase the threshold. For example someone could give their home to their children or grandchildren. As a result the threshold may rise to £500,000. In addition it is possible to donate part of the estate to charity to push the total below the £325,000 threshold.

The Government understands that people can do different things to reduce the value of estates. As a result they take a lot of care to ensure that the valuations are correct. HMRC will look for any signs that the values are understated or the steps to reduce the total value are illegal.

Changes due to coronavirus

The coronavirus pandemic has forced new changes in inheritance tax. To ease the situation and allow social distancing with professional agents, HMRC will now accept IHT205 forms without a physical signature from the agent under certain circumstances. They require that the legal personal representatives of the estate include their names and personal details on the form. The representatives must also have seen the account and agree to it.

Finally, the agent must provide a statement to confirm that the representatives named have seen the tax return and agree to it. This works in place of providing the signature.

Tax returns in Harringay

If you have any issues with any type of tax return you can ask us for help. Our team are professional and have a lot of experience. We can guide you and ensure you provide the right information.

Contact us today to work with the top provider of tax returns Harringay has. Our services are available with fixed fees and we will look to give you all the support you need.