Inheritance tax is charged on the assets that form part of a person’s estate when they die if their estate exceeds the threshold, currently set at £325,000.
Any assets over this threshold are then taxed at 40% (although there is a reduced rate of 36% where more than 10% of the estate has been left to charity).
In certain circumstances it is also possible for married couples to double up this threshold when the survivor of them dies. There are various exemptions and reliefs available that can be used to mitigate the amount of tax payable. We’ll be able to advise you on these and help you structure your affairs in the most tax-efficient way.