Inheritance Tax
INHERITANCE TAX
You may not have to pay inheritance tax on everything you leave behind when you die. You only pay inheritance tax on assets above the £325,000 threshold. The first £325,000 plus your spouse’s and civil partner’s allowance is free of inheritance tax.

WHAT IS THE INHERITANCE TAX AND HOW DOES IT WORK?

Inheritance tax is a tax on an individual's estate. However, the exempt amount from inheritance tax varies depending upon how you leave your money. There is usually no inheritance tax to pay if your estate's value is below the threshold or you leave everything to your spouse or civil partner, a charity or a community amateur sports club. For more information about this important tool, visit our Wills and Probate Glossary.

HOW DOES IT WORK?

Married couples and civil partners can get all the inheritance tax (IHT) benefits of married couples if their estate is worth less than the current threshold of £325,000 per person. Any income tax advantages are also available to you. If your estate is worth more than £650,000, you can't claim the IHT marriage allowance. However, there is no limit on the amount of allowance that can be claimed for civil partners.

The standard inheritance tax rate is 40%. So if you pass on up to the threshold, nothing will be charged. But if your estate is above that amount, then the 40% rate will be charged on the part of your estate that’s above the threshold.

Married couples inheritance tax

Reliefs and Exemptions to Inheritance Tax

  • If 10 percent or more of the estate's net value is left to charity, the estate can pay inheritance tax at a reduced rate of 36%.
  • There are a lot of exemptions for gifts, including the giver living for seven years after the gift.
  • Business Relief can allow some assets to be passed on free of inheritance tax

Will and Probate Services

Our Wills & Probate Services department creates, executes and maintains your estate plan by writing and executing wills, trusts, medical powers of attorney, and much more.

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Our Wills cover all the key areas and ensure your final wishes are carried out correctly. Your will is one of the essential documents you'll ever make, and it gives direction to what happens when you die.

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If someone close to you has died, dealing with the Estate Administration can make it extremely stressful. There are many legal and financial jobs and tasks to complete while dealing with personal grief, and let us deal with those formalities for your family at this emotional time.

Lasting Power of Attorney

Powers of attorney allow someone else to make decisions on your behalf if you can't make one for yourself. Make sure your partner, wife or close relatives have the ability to carry out your wishes if you become unable.

Planning for Care

One-third of us need long term care in our later years. We can help you create a care plan for the future so that family members understand exactly what you want and need when planning for care. Having your Will and Probate prepared before the family needs it, talk to experts Will Probate.

Inheritance Tax Services

Need advice on Inheritance tax? Talk to our team.

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