Best bits: Inheritance tax masterclass

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The Martin Lewis Podcast 56 min 2 speakers 6 chapters transcribed 18 days ago
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What is inheritance tax and who is required to pay it in the UK?

Martin Lewis 0:00
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Professor Devi Sridhar 0:06
Hei, ennen kuin juhlat alkaa, niin älkää sulkeko tuota väestösuojan ovea, ettei jäädä tänne kellarijumiin.
Unknown 0:12
Juhlat ja yritystapahtumat voi viettää myös viihtyisesti. MS Finanzialta löydät te omaa rauhaa tai merellistä menoa, helppoa kuin tapahtuma merellä. Tervetuloa kylään! Ei kerolla. Endolino plus juna kiihdytti asemalta. Hytissä mikko hymyili uudelle kollegalleen. Ilmassa oli alkavan työystävyyden tuntua, jota varjosti vain kalvava epäilys. Oliko työkaverin nimi sittenkään se, millä Mikko oli häntä koko ajan kutsunut? Vai otako maan rakoon? Vaihtaa juna vai jopa työpaikkaa? Kaikkia ongelmia ei VR yrityslippukaan ratkaise, mutta se joustaa, jotta työmatkoilla olisi vähemmän muredittavaa. Vejare. Yhteisellä matkalla.
Martin Lewis 0:59
That is the risk-averse move to do. Lock in on that now. Who should be considering this and who shouldn't? That's not a bad rule of thumb, is it? Has this totally shaken up all the type of inheritance tax planning that you do with clients and throwing it all up in the air? And then you have to make sure you take the money out, or the rate won't be that good. Hello, I'm Martin Lewis, and this is the cunningly named The Martin Lewis podcast. I do wonder what that's gonna be about. And as I'm taking a Wii break for the summer, welcome to a Special Best Bits Podcast, selected and put together by the one and only podcast producer Simon. I'm interested to see myself what's gonna be in it. It's being chosen from our big topics pods.
Martin Lewis 1:35
Much of that comes from my Deep C Radio 5 live show with Adrian Charles. Of course, as it's Best Bits, if you hear me mention any specific products or rates, please do double check that they haven't changed. But big picture should all be good. In this week. Week's Best Bits. We're going to be talking how inheritance tax works in detail, why marriage is the best way to reduce inheritance tax as well as giving things away, and the change coming that soon means pensions will have inheritance tax on them, as well as all the gifting rules you can utilize and a whole lot more. Then we've picked a tell us for you with great advice from people who've already been there and done that. It's tell us what you learned about money.
Martin Lewis 2:14
when you retired that you would now tell others in advance. Like the thing to you.
Unknown 2:22
Habeus, agarrei. So I'm gonna work See No.
Adrian Chiles 2:35
Sure.
Unknown 2:36
Easy.
Adrian Chiles 2:38
Today's main topic is inheritance tax. Talk us through the basics then.
Martin Lewis 2:44
Okay. Many fear inheritance tax. When I do polls on this, you know, it's 40-50% of people are petrified by inheritance tax, but it is worth stating only 5-6% of estates pay it. And even once pensions are included in inheritance tax from April 2027, the estimates I've seen is that I'll be pushing that up to still less than double figures percent of estates pay it. Now it is worth noting that's probably slightly underestimating its impact. Because as we'll talk about later, if you're married you can leave everything to your spouse. So one of the couple's estates probably wouldn't have any inheritance tax to pay and the other would. So but even if you doubled the numbers, then you're talking, you know, ten to twelve percent of estates pay it and with the pensions up to twenty percent pay it.
Martin Lewis 3:25
It is still a minority and that's worth starting. One of the key factors in inheritance tax is whether you are married or not. Now for marriage I also include civil partnership. If you're single or just cohabiting, even if you've lived with someone for 30 years and don't have any kids, there are very different rules. So let's start off with the rules for those people who aren't married. Now, single could mean cohabiting with someone on a long-term partner. Single all my definition of single is is you are not currently married or in a civil partnership. So the classic rule, if your estate, which is all the assets that you have, property, business, shares, savings, everything that you own, is under £325,000 as a single person, there is no inheritance tax to pay.
Martin Lewis 4:14
So, if that's you, inheritance tax isn't an issue.

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