Will I have to pay inheritance tax?

In England and Wales, inheritance tax (IHT) typically has to be paid when an individual’s estate is worth more than £325,000 when they died.

We offer free initial advice and our fixed fee complete estate administration service deals with the question of inheritance tax and ensures that the appropriate exemptions are applied.

The £325,000 figure is the current inheritance tax threshold and in addition to this there are additional exemptions where property is left to a direct descendant which can mean that an individual can have up to £500,000 tax free before inheritance tax is paid. Inheritance tax currently is charged at 40%  although a lesser rate can be applicable for certain assets or beneficiaries. In addition if a spouse has predeceased their unused IHT allowances can be utilised and taken into consideration which can mean that up to £1m of assets can be exempt in certain circumstances. There is no IHT between spouses.

In order to get a grant of representation the Inland revenue will need to see details of the value of the estate to calculate if tax needs to be paid. The grant of representation will not be issued until such time as any tax has been paid.

When you choose our complete estate administration service we will take care of the relevant inheritance tax matters as part of the administration of the estate.

For advice on inheritance tax or any aspect of estate administration, please contact us today.