Valuable works of art and other family heirlooms can give the owner much pleasure during their lifetimes but the next generation a headache when they inherit. There is no automatic exemption from inheritance tax for heirlooms and heritage assets and the recipient may have to pay tax on the item they inherit at the rate of 40%. However, to save family members from having to use valuable savings or sell assets to fund the tax, there are reliefs available. A little bit of time spent during your lifetime planning how to mitigate potential tax on death could save a lot of time, tax and anxiety for loved ones later.
In the article below " Keeping your heritage", first published in Taxation Magazine (16 January 2014) and reproduced here with kind permission, Ann Stanyer, a partner in the Private Client team at Wedlake Bell, and Kate Davies, a solicitor in the team, discuss the planning options available. Ann is an expert in tax planning for personal chattels and is author of Sweet & Maxwell's Personal Chattels: Law, Practice and Tax. Please contact Ann or Kate for further information on this subject.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.