Inheritance Tax

 

Inheritance tac (IHT) usally arises when a person dies, and their estate (which includes any assets held in turst, plus any gifts given away within 7 years prior to the date of death), is valued over £325,000. This is the IHT nil rate band, and anything over this level is taxed at 40%. 

 

IHT may also be payable on assets transferred to trusts or gifts made during someone's lifetime.

 

For maried couples and civil partners, any unused nil rate band can be transferred to their spouse or partner upon death, increasing the threshold to a maximum of £650,000 for the survivng partner.

 

Generally, IHT is paid by the executor or personal representative from the estate within six months of the date of death, but f the value of the estate is tied up in property, it may be possible to pay in instalments.

 

To ensure your estate will be dealt with in the most tax efficient way, it is wise to seek professional advice. For further information regarding IHT, you can visit the HMRC web page

 

 

To make an appointment to see a tax advisor about inheritance tax issues, please