It can be difficult to know when to start planning for Inheritance Tax and whether it applies to you. That’s why we are here to help.
Inheritance tax is a tax on the estate of someone who has passed away. The tax will not have to be paid if the estate is worth under £325,000. If it is worth over this threshold but is being left with your spouse, civil partner or charity, there is also no Inheritance Tax to pay.
The standard Inheritance Tax rate is 40%, which is only charged on the amount of the estate that is over the threshold. Your tax-free threshold is essentially £325,000, and anything over that amount will be taxed 40%. There are exceptions where Inheritance Tax is less, for example if some of the estate is donated to a charity. Contact us to find out more about Inheritance Tax and how it may affect your family.
If there is a will, the executor (person dealing with the estate), will ensure that the correct funds are paid to the HMRC.
It is important to get fully clued up with regards to personal tax planning and Inheritance Tax. We offer advice on how you can prepare if the certain taxes apply to you. Just give us a call on 01392 875392 for more information.