Inheritance Tax
Inheritance Tax is payable on a death.
Inheritance tax is charged on assets which are bequeathed on death, or which have been transferred in the seven years before death. It applies to all those domiciled in the UK at the time of their death.
The first £300,000 of an estate is treated at the zero rate bands and no tax is payable. After this tax threshold, inheritance tax is charged on the remainder of the estate at the single rate of 40 per cent.
There are a number of exemptions and reliefs which can mitigate the effect of inheritance tax.
Annual exemption
Gifts of up to a total value of the £3,000 can be made each year free from any inheritance tax. The previous year’s unused allowance can also be brought forward to the current year if utilised when the current year’s allowance has already been used.
Small gifts.
This permits any number of tax free gifts of under £250 each year to different people.
Quick succession relief.
Charitable and political donations are totally exempt.
Gifts between spouses are exempt
Funeral expenses can be offset against the value of the estate.
Inheritance tax is due to be paid within six months of the end of the month in which the death occurred.
Intestacy | Inheritance Tax | Powers of Attorney | Probate and Administration | Trusts | Wills
Permalink
Relevant QandA-Click on any Q to read the answer
Some short Q&A that might help you
- My mother-in-law sadly passed away in June this year, even though my first husband and i divorced in 2001 my mother-in-law and i remained very close and i took care of her on a daily basis until she sadly passed away. she has an engagement ring which she
- The deceased died in a care home without leaving a will. She never married and had no children. Her nearest next of kin are 3 brothers and 1 sister. There is another sister but they did not share both parents.(Half Sister) On her death, her oldest
- I have been with my fiancee for just over 13 years, on and off,being together for the past 6 and a half. his father passed away 3 years ago but left no will, the property was left to him and his sister, but he made a verbal agreement to give her 25k for
- Can a will be contested if mother and father have a son and daughter..daughter marries and has 3 children but dies tragically when children are 7,9.11 years old. Son is a bachelor who lives with his parents in the parental home until they die. He is as fa
- Is there a time limit on challenging a will? Aunt died in 1999 leaving everything to my sister. Information has recently come to light which could make will invalid.
I want to:
• Get a divorce
• Have contact with my children
• Make a small claim
•Write a letter of claim
•Obtain a Grant of Probate
•Get legal advice and help with my case
•Make a Will
•Change my Name
•Prepare a legally binding agreement
• Sever a Joint tenancy
• Prepare a Partnership Agreement
• Sell a Jointly owned Property
• Appoint a Guardian for my children
Inheritance links
Information sheets.
Decision making for those who lack capacity
User login
Navigation
The Legal-Zone Blog with regularly updated news items, opinions and articles from the Legal-Zone Team and other contributors.