Iain Stevenson, Head of Dental at Wesleyan Financial Services, discusses how the inflation rate, which came down to a three-year low of 2.3%, will affect dentists, as well as inheritance tax news
Almost hitting the Government’s 2% inflation target will be welcomed by dentists, helping to mitigate everyday financial pressures.
Importantly, it clearly strengthens the case for the Bank of England to cut the interest rates in June, which is promising news for dentists, particularly when it comes to relief on mortgage rates. This could also lead to the cost of debt falling in the future, which will benefit those looking to secure financing or expand their dental practices.
However, the Bank has been clear that it wants to see inflation settle at or around its target before it acts on rates, so we may need to wait a little bit longer for it to confirm that this isn’t just a flash in the pan.
Inheritance Tax
The Inheritance Tax threshold is set to remain at £325,000 until at least 2028. This means that – as the value of their personal assets continue to rise – we’re likely to see more and more dentists get caught in the tax net.
The good news is that there are steps you can take to reduce your Inheritance Tax liability. For example, there’s a common misconception that Inheritance Tax must be paid on the family home if it’s worth more than £325,000, but actually you have the right to transfer that property to your spouse or children with no Inheritance Tax to pay.
Remember, acting early means you could be able to keep more of your hard-earned wealth in the family, so it’s never too soon to start planning. The rules around Inheritance Tax can get complicated, so it’s worth considering getting specialist financial advice for your specific circumstances.
