Padstone Financial Management Ltd

Tax and Trusts

Hereford Trusts Adviser Padstone Financial ManagementThis is a complex area which requires great care and specialised advice. We normally cross our services with solicitors in this area to ensure most accurate advice is provided.

There are numerous types of trust available usually utilised for Inheritance tax planning,

  • Discretionary Trust
  • Gift and Loan Trust
  • Discounted gift Trust
  • Reversionary Interest Trust
  • Bare trust
  • Flexible Trust

Inheritance tax and its application can be confusing and is often misunderstood. The basic rate of IHT is 40% on assets above £325,000 for an individual; this has not changed for a number of years. What have changed are the allowances that can be offset against it. An example of this is the recently added Main residence relief. This is an extremely complex allowance which again has been misunderstood.

We can offer assistance with income tax, capital gains and Inheritance tax in conjunction with your solicitor and Accountant to provide a comprehensive wealth management service.

Annual Gift allowances as at 6th April 2017

  • Gift allowance £3,000 per annum per donor (it is possible to carry forward an unused allowance to the next year - but only for one year)
  • Gifts to individuals £250 per annum for donee (can't include same person as part of £3,000 gift allowance)
  • Gifts on marriage to grandchild £2,500 per annum per donor
  • Gifts on marriage to child £5,000 per annum per donor
  • Gifts out of income - unlimited but you must be able to maintain your standard of living after making the gift

We would recommend advice is always sought where Inheritance Tax is concerned due its complex nature.

Padstone Financial Management Ltd is authorised and regulated by the Financial Conduct Authority, and is entered on the FCA register ( under reference 430531.

The Financial Conduct Authority does not regulate taxation and trust advice will writing and some aspects of buy to let mortgages.

Contact Us
Telephone: 01432 820710
Fax: 01432 820701
Address: Court View, Preston Wynne, Hereford HR1 3PE

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