inheritance

Inheritance Tax

Inheritance Tax (IHT) is usually paid on assets held at death but can also apply to trusts or gifts made within someone’s lifetime and also trusts or gifts within seven years of death. According to Her Majesty’s Revenue and Customs (HMRC) most estates do not have to pay inheritance tax because they are valued at less than the threshold which is currently £325,000 (Tax year 2012-2013). Any amount over the threshold is payable at a rate of 40% or reduced rate of 36% if the estate qualifies as part of a charitable donation. For married couples and civil partners the threshold can be as high as £650,000 if one partner transfers the "nil rate band", their unused Inheritance Tax threshold, to their other half when they die. Inheritance Tax Exemptions and Reliefs... »