The Blog

Changes To Inheritance Tax for Budget 2022

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;

  1. The funds will exist for your beneficiaries to be able to settle the tax bill. No assets will need to be sold.
  2. 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.

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What is C.A.T.?

What is Capital Acquisitions Tax?

Capital Acquisitions Tax (CAT for short) consists of 2 separate taxes – Inheritance Tax and Gift Tax. Both involve the transfer of ownership of any asset, property or cash from one person to another. Inheritance tax applies when someone receives assets or property (the beneficiary) on the death of the person who has transferred the assets (the disponer) to them. Gift tax applies when someone receives money or any asset from a living person.

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Organising life insurance during a Pandemic.

Can you organise life insurance during this Pandemic?

Much like writing a will, setting up a life assurance policy can make us feel like we are begging for something to happen to us. This is unlikely to be the case! Many people have been staying at home to help limit the spread of Covid 19, not just for the sake of their own family, but for the wider community. Being with our families for such prolonged periods of time can invoke a multitude of reactions, but for the most part, it’s all good feelings!

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Will my life assurance pay out for Covid 19?

Will my life assurance policy pay out for Covid 19?

I have received a few queries from existing clients asking whether their life insurance and other policies would pay out if they were to die from or contract Covid 19, so I thought I would set out some clarification on where the life assurance companies stand with regard to paying claims giving the current climate.  For the most part, all life assurance companies have said that their claims philosophy remains the same as prior to this pandemic.  This should provide you with some peace of mind.

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Preparation is key…

Tell your beneficiaries where your will is.

It’s fantastic to make a will. Like I mentioned before, it brings clarity to a frequently challenging and fraught time for others. It can also save a considerable amount of time and administration when dealing with the estate of a deceased person.

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Covid-19 – Asset Valuation Reviews.

Everyone has been or will be affected by Corona Virus / Covid 19 in some way, shape or form.

Apart from the obvious horrific implications on people’s health resulting in many unnecessary and unexpected deaths, societal changes (will you ever shake hands again?)

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