Inheritance Tax
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Inheritance Tax (IHT) is charged at 40%
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In the case of people who are married or in a legal civil partnership:
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On first death there is normally no IHT to pay if the estate passes to your spouse.
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There are exceptions
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It applies if the value of your estate is greater than £325,000 or £650,000 if a married couple.
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The first £325,000/£650,000 is effectively a tax-free allowance, called the Nil Rate Band (NRB).
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The NRB allowance of the first deceased gets added to that of the survivor, becoming £650,000.
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Depending on the value of the estate and other criteria you may qualify for an additional tax-free sum called the Residential Nil Rate Band of £175,000 for one person or £350,000 for a legal couple.
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In the case of a legal couple, IHT is generally payable on second death and is dealt with as part of the Probate process.
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There are legal and effective ways of reducing an IHT liability.
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See the Estate Advice & Planning page.
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We can check your Inheritance Tax liability,
if any, and provide an estimate at no charge.