Inheritance Tax

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Tax on those who inherit money, assets, property etc from someone who’s passed away.
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You don’t pay inheritance tax if:

• The value of your estate is less than £325,000
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• The person leaving you is your spouse, civil partner, charity, community amateur sports club
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• You’re gifted everything 7yrs before passing away
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It still needs to be reported to HMRC.
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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
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Gifts

Inheritance tax may have to be paid on gifts if they were given less than 7 years before the person died. Factors influencing:
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• Relationship of the person to you
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• Value of gift
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• When gift was given
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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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