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Inheritance Tax

Tax on those who inherit money, assets, property etc from someone who’s passed away.

You don’t pay inheritance tax if:

It still needs to be reported to HMRC.

Inheritance tax is set at 40% standard, you’ll only be charged on the part that’s above the threshold, you can pay it at a reduced rated of 36% on certain assets if 10% of more of your will is dedicated to charity

Gifts

Inheritance tax may have to be paid on gifts if they were given less than 7 years before the person died. Factors influencing:

Reliefs/Exemptions

Regarding gifts, taper relief might mean that inheritance tax is charged at <40%. Business relief allows some assets to be passed on free of inheritance tax or with a reduced bill.

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