According to recent data from the Office of National Statistics, net wealth in the UK reached ￡8.8trn in 2015, with the average household worth ￡378,000. The value of homes has contributed to 62% of the total. Non-profit organisations and households saw an increase in their net worth to ￡10.2trn, an equivalent of ￡378,000 per household (￡367,000 in 2014). A rise in the value of property is the main contributory factor, which saw an increase of 7% in 2015, adding ￡355bn to the value locked up in Britain’s homes.
The boost to overall net wealth could have serious financial implications for individuals if your affairs are not carefully considered and tax structures put in place. For example, individuals who receive rental income from letting their properties are about to see major changes in the way their rental income is taxed (read out briefing note "Concerns for first-time buyers and over-45s”), and many individuals and families may now find themselves with estates estimated to be above the threshold of ￡325,000 for paying inheritance tax.
At Beavis Morgan, we can assist with both medium and longer-term financial planning to ensure that you, your family, and ultimately future generations of your family, will benefit from your wealth, in accordance with your wishes. We also offer specific expertise on many aspects of landed estates and their associated rural businesses such as capital taxes planning, including mitigating exposure to inheritance tax (IHT) and capital gains tax on chattels and land.
Please contact Alan Ford or your usual Beavis Morgan Partner to find out more about how we can assist you to protect your wealth and plan for IHT.