In a nutshell, everything remains the same. Following the release of Budget 2022, the 3 main thresholds remain as they were, as does the rate of tax payable on any amounts inherited in excess of the thresholds. The rate of tax payable stays at 33%.
Full details of Budget 2022 can be found here;
Given the rapidly rising values in many asset classes – property etc., one could be forgiven for hoping that there would be an increase in the tax free thresholds to allow for at least passing your estate on to your children – even if they were brought back to the higher amounts from some years ago, but unfortunately, they have stayed the same. It would seem like an easy target for the Government – Look relatively generous by not reducing the thresholds and not increasing the rate of tax payable, but no doubt given the rise in property values in particular, this could prove to be quite the windfall for the powers that be.
So, has the need for a Section 72 insurance policy become even more important? If this is something that you would like to explore, please feel free to request a quote for your own section 72 policy here – Request a quote.
The rate of tax payable on your inheritance stays at 33%. Is your estate liquid enough to cope with this payment?Food for thought!
The two main things that you can gain from organising a Section 72 insurance policy are;
- The funds will exist for your beneficiaries to be able to settle the tax bill. No assets will need to be sold.
- More often than not, it is impossible to ‘lose’ financially on a policy. E.g. More is guaranteed to be paid out than you could possibly pay in premiums. This does depend on what age you are when effecting your policy.
A Section 72 policy is worth exploring, so if you would like to have a chat about the benefits, the cost and the downsides, phone Brian Whelan on 01 668 6136 or contact us here.