Zero tolerance
Use each and every allowance
Philanthropy is not just for the seriously rich
Your security both now and in the future is always the priority
Inheritance tax planning is an ongoing process

We truly believe in the quote by Roy Jenkins who was Chancellor of the Exchequer in the late 1960’s that “Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”.

We strive to eliminate our clients’ inheritance tax (IHT) liabilities. Having seen the anguish on the faces of beneficiaries when they have to write out a six-figure cheque to HM Revenue and Customs, we know just how painful it can be to have to do that.

It can be difficult for children to understand how their parents, who having been so financially canny throughout their lifetimes, could leave their money and assets completely unprotected when they died. After having spent years making sure they paid not a penny more in tax than necessary, they then squandered hundreds of thousands of pounds on their death.

We understand the issues that make people reluctant to deal with their potential inheritance tax liabilities, but facing up to the situation is the most important step to take, and once taken, you’ll be glad you did. There is a solution for almost every situation and we look forward to working with you to ensure that your estate is passed on intact.

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Every individual can gift £3,000 in each tax year, which can also be backdated for one further year. This allows couples to gift £12,000 in one go.

In addition, gifts of £250 can be made to any number of individuals so if you had three children, who themselves each had three children, then you could gift £250 to each spouse and £250 to each grandchild, making a total of £2,250. Furthermore, there is a special £5,000 allowance on a child’s marriage and any gifts to charities or political parties are entirely exempt.

There is also the very well known, yet under utilised, allowance which allows gifts out of income to be made, as long as there’s no reduction in your normal expenditure. Like the other gift allowances, this allowance can be backdated for one year. It is possible to restructure an investment portfolio so that it creates extra income, which can also be gifted.  Even reinvested income can be gifted in the form of a capital sum each year.

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Even though you may not have been able to support charities as much as you would have liked, perhaps because you felt you might need the money for a rainy day, then philanthropy on death is an excellent way of keeping the taxman’s hands off your money and leaving a legacy to a charity. If you need our help to select appropriate charities or even establish your own charitable foundation, then you only have to ask.

At Equilibrium, we have our own charitable foundation, which helps the young and the elderly in the districts where our clients live. You may wish to support that foundation or make a specific lifetime request as to how the money is utilised.

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We will never do anything that will jeopardise your personal financial plans; indeed our priority is to ensure that you have sufficient capital and income to achieve your goals.

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Different solutions will be appropriate at different stages in your life: what is right this year, may not be next year. Part of our role is to help you decide which option is right for you now, and what options are available to you in the future.