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Inheritance Tax Portfolio Management

Introduction

One of the ways of reducing your taxable estate where you retain ownership of the investments and income derived from them is to have an inheritance tax portfolio. Dowgate Wealth offers a discretionary IHT portfolio service that is simple and cost effective.

Our Advantages

  • Synchronized CRM and back-office functions provide scalability, leaving us well placed to meet demand
  • Efficient digital infrastructure to maximise output and deliver best-execution for our clients

  • Optimized onboarding process to ensure a quick, seamless and stress-free experience

  • Direct contact to a dedicated member of the team who will be with you every step of the way. It is important to know that you are not just a number

Inheritance tax rules

Currently 40% Inheritance Tax is liable on your assets above £325,000 nil rate band.

New rules in 2017 provide an additional nil rate threshold (residence nil-rate band). This has been phased in and raises the IHT threshold to £1 million for married couples and civil partnerships (£500,000 for singles) who pass their main residence on to direct descendants (children and grandchildren). In 2020 the residence nil-rate band increased to £175,00. Going forward it will increase in line with inflation.

The new rules mean that estates with a net value of more than £2 million face a phased withdrawal of the main residence allowance, at a rate for £1 for every £2 over this threshold.

For more information, download our Inheritance Tax Portfolio brochure by clicking here or email hello@dowgate.co.uk to register your interest.

Inheritance tax & Covid-19

It was announced in the Chancellor’s annual Budget on 3rd March 2021 that there would be a five-year freeze on inheritance tax allowances in an attempt to recover some of the budget deficit caused by increased fiscal stimulus measures (such as the Furlough Scheme) as a result of Covid-19. The freeze, which has remained unchanged since 2009, means that the main £325,000 tax-free allowance is not adjusted for the equivalent inflationary pressures which have risen by 50 percent during the same time period along with rising house prices. As a result, more estates will be hit with the 40pc inheritance tax levy than previous years and estimating to earn the government more than £985m in additional revenue.

FAQs

The minimum investment is £50,000

DGW charge a management fee of 1.25% per annum with a £20 transaction charge per trade

The two-year period begins once the funds in the portfolio have been invested in the market

The two-year window does not restart provided the proceeds are invested in another stock that qualifies for BPR. Capital Gains Tax may be payable at your appropriate rate.

Part or all of your portfolio can be realised at any point and DGW will not charge a penalty for doing so. There will be the usual market costs associated with selling the assets and the resulting withdrawn capital value may form part of your estate for IHT purposes

After probate, the portfolio can be transferred to your surviving spouse or civil partner without re-starting the requisite two-year holding period. Otherwise, the portfolio will be considered part of your estate in the IHT calculation

At the date of death, if requested, we will cease trading on the account and can provide a probate valuation if requested. Once Grant of Probate is received, we can take instructions from the executors. Alternatively, if a payment to HMRC is required, then we will require a copy of the death certificate and a letter of indemnity from the executors

We can deal directly with your Financial Advisor and they are responsible for the suitability of this service for you

Open an account with us today

We have made it as simple as possible for you to open an account with us. If you need any assistance, you can contact us via our online messaging portal, however, if you would prefer to have a conversation over the phone, a member of our team would be delighted to help.

More Services

If you are a Director of a public company or owner of a private business of any size, we can help with establishing tax efficient Share Plans to provide incentives for both Directors and employees. Click on the Share Plans page for more information.

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