Calculating the Tax

Calculating the Tax Liability

When calculating the tax liability you first have to calculate your actual net worth on death. Below is an example calculation for a typical high net worth client's estate. The information below is based on a UK domiciled citizen, meaning that all their world wide assets will be included in the estate.

A Typical Scenario

Property	£1,200,000
2nd Property Abroad	£500,000
Investments	£750,000
Life Assurance	£250,000
Pension scheme	£450,000
Shares in family Company	£850,000
Chattels	£40,000
Total	£4,040,000
Less Gifts to Charity	£40,000
Less Nil Rate Band	£325,000
Leaving taxable value	£3,675,000
Tax due at 40%	£1,470,000
Estate to Distribute	£2,570,000

The above shows that the beneficiaries would have to pay the Inland Revenue £1,470,000 in tax before the other funds would be released to the benficaries.

If you would like Trinity Wealth Management to help you reduce this tax for you, then please click 'Contact Us' below and complete the response form.
 

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is an independent financial advisor, St Albans,
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