Inheritance tax (IHT) is a one-off tax paid on the value of the estate, above certain levels, after someone dies. The estate is made up of money, property and any other assets they owned, less any debts.
The tax is paid by the beneficiaries. It can, in many circumstances, be paid from the estate, but doesn’t have to be paid on all estates.
Typically, there’s no inheritance tax to pay if:
- The value of your estate is below £325,000 or below £500,000 when leaving your home to your children or grandchildren.
- You leave your estate to your spouse, civil partner or a charity or amateur sports club.
Fundamentally, the earlier you face up to inheritance tax, the more chance you have of cutting the bill paid by your loved ones.
Inheritance tax is a tricky and emotional topic. Read the latest of our series of guides provided by UK price comparison website Comparethemarket to discover when inheritance tax is charged, and how to cut the bill:
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