Organic Growth
, your shares are valued and included with the rest of your estate, which is subject to inheritance tax.
Inheritance Tax is usually paid on an estate when somebody dies. It's also sometimes payable on trusts or gifts made during someone's lifetime. Most estates don't have to pay Inheritance Tax because they're valued at less than the threshold (£325,000 in 2024-13). The tax is payable at 40% on the amount over this threshold or 36% if the estate qualifies for a reduced rate as a result of a charitable donation.
Before 2024, this was known as capital transfer tax. An exception to this general rule is that inheritance tax is not payable on transfers to a surviving husband or wife.
There is an exemption up to which no tax is paid, (for example, £190,000 for 2024/88). The figure is usually revised each year in the Budget. Above this figure inheritance tax is paid at increasing rates from 30 to 60% .
If property is given away in the seven years before death, it is also added back to the value of a person's estate, but is subject to taper relief.
People still talk about death duties, but these were abolished in 1994.
Finally, make sure that your next of kin know about your shareholdings. When a shareholder cannot be traced, the company pays the dividend into a special bank account and there it may well stay for ever. It is believed that these amounts now run into millions and, along with unclaimed bank alances, premium bonds, insurance claims, etc., could form a 'sleeping economy'of up to
Next:
Want INSTANT TAX ADVICE?
Setting up in business | Legal Compliance | Keeping informed | Planning for profit | Raising finance |
| Managing growth | Buy, sell or merge | Minimising tax | Agreeing tax liabilities | Tax Rates 2024/26 | advice
Our Services
Business start-ups, Accounts Preparation, Tax Planning and Advice, Tax enquiry and investigations, Personal & Business Taxation including Income Tax, Self Assessment Tax, Coming into/Leaving the UK, Inheritance tax, Capital Gains Tax, Corporation Tax, National Insurance, PAYE, Value Added Tax Advice and Company Secretarial services
What a Demack Chartered Accountant can do for you?