{"id":29880,"date":"2024-03-03T11:23:36","date_gmt":"2024-03-03T05:53:36","guid":{"rendered":"https:\/\/farratanews.online\/im-an-inheritance-tax-expert-heres-how-to-avoid-a-hefty-bill-on-your-property-personal-finance-finance\/"},"modified":"2024-03-03T11:23:36","modified_gmt":"2024-03-03T05:53:36","slug":"im-an-inheritance-tax-expert-heres-how-to-avoid-a-hefty-bill-on-your-property-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/farratanews.online\/im-an-inheritance-tax-expert-heres-how-to-avoid-a-hefty-bill-on-your-property-personal-finance-finance\/","title":{"rendered":"\u2018I\u2019m an inheritance tax expert – here’s how to avoid a hefty bill on your property’ | Personal Finance | Finance"},"content":{"rendered":"

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Expert explains inheritance tax rules on property and how to avoid hefty bill (Image: Taylor Rose Law Firm)<\/span><\/span><\/div>\n

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With frozen thresholds dragging more Britons\u2019 estates into the inheritance tax net, many may be wondering how to pass on property most tax-efficiently after death.<\/p>\n

There are several ways people can do it, but it\u2019s important to be aware of the strict rules to avoid any legal issues, an expert has said.<\/p>\n

Speaking to Express.co.uk, Mark Stubberfield, head of private clients and wills, probate and trusts at Taylor Rose Law Firm, an independent firm of solicitors, said: \u201cHistorically, the nil-rate threshold increased each tax by around three to four percent.\u201d<\/p>\n

The nil-rate threshold refers to the amount a person can inherit tax free, which is currently \u00a3325,000.<\/p>\n

Mr Stubberfield said: \u201cIt has been frozen since 2009, and there is no sign of it increasing until 2028 at the earliest, whereas the value of estates has continued to increase, due to rising house prices.\u201d<\/p>\n<\/div>\n

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READ MORE: <\/strong> Hunt can afford just ONE tax cut in the Budget – and pensioners won\u2019t like it <\/strong><\/p>\n<\/div>\n

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Houses prices have increased over 80 percent since the inheritance tax threshold was last frozen (Image: Getty)<\/span><\/span><\/div>\n

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But since April 2009, HM Land Registry data shows the average house price in the UK has increased by more than 80 percent – London being a staggering 103 percent – from \u00a3158,004 to \u00a3284,691.<\/p>\n

Subsequently, more properties are being pulled into HMRC\u2019s tax net. The tax authority is currently raking in \u00a3146million per week – \u00a36.3billion in the last nine months.<\/p>\n

Mr Stubberfield noted: \u201cWe would need a nil-rate threshold of \u00a3585,000 to keep in line with this increase.<\/p>\n

\u201cEven with the residential nil rate threshold being introduced in 2017 at \u00a3175,000, this would bring eligible estates to claim a total allowance of \u00a3500,000, so still not bringing the allowance in line with the increases in house prices.\u201d<\/p>\n

So, what are the rules and how can people plan most tax-efficiently?<\/p>\n<\/div>\n