Inheritance tax may be payable on the assets you give to others in your lifetime or leave behind for others when you die.
Depending on the value of your estate, you may need to consider financial planning to minimise this tax.
The threshold for IHT is currently £325,000, until 6th April 2021.
IHT is charged on a person’s estate when they die and on certain gifts they make to others during their lifetime.
The rate of tax on death is 40% and 20% on lifetime chargeable transfers. The first £325,000 is not chargeable.
Many lifetime gifts are treated as potentially exempt transfers and are not taxable so long as the donor lives for at least 7 years after making the potentially exempt transfer.
There are also various exemptions and reliefs.
For more information, please visit https://www.gov.uk/inheritance-tax or contact us directly