Charlotte McCrossin always knew she would take over her family-run business when her mum retired – but more recently she has started to fear being hit with a hefty inheritance tax bill.
Gatwards in Hitchin, Hertfordshire, is one of the oldest family-run jewellers in the UK, but despite their rich history, Charlotte, of the Gatward family, is worried about what tax she and her family will face in the future.
“My mum and aunt jointly own the building,” explained Charlotte. “Each of their half of the building will form part of their overall estates. So the building will be subjected to IHT on both of their deaths.”
IHT is paid on someone’s estate when they die, before anything can be passed on. It is not applied if the estate is worth less than £325,000, known as the nil rate band, or if the estate is left to a person’s wife, husband or civil partner.
If a person’s main home is left to direct descendants, including children and grandchildren, the IHT threshold might increase by £175,000 depending on the value of the home.
