How do I pay inheritance tax in the UK?

In the United Kingdom, inheritance tax is typically paid on the value of an estate (which includes assets such as property, money, and possessions) when someone dies. The tax rate is currently set at 40% on the value of the estate above the inheritance tax threshold, which is currently £325,000.

Here are the general steps for paying inheritance tax in the UK:

Obtain a Grant of Probate or Letters of Administration: This legal document is needed to access the deceased person's assets and pay any debts or taxes.

Value the estate: The total value of the deceased person's assets and liabilities should be calculated, including any gifts made in the seven years before the date of death.

Determine whether any tax is owed: If the total value of the estate is above the inheritance tax threshold, then inheritance tax may be due.

Complete the Inheritance Tax account form: Once the value of the estate has been determined, an Inheritance Tax account form should be completed and sent to the HM Revenue and Customs (HMRC).

Pay any tax owed: If inheritance tax is owed, it should be paid to HMRC within six months of the date of death.

Obtain a clearance certificate: Once the Inheritance Tax account form has been received and any tax owed has been paid, HMRC will issue a clearance certificate. This certificate will be required to release any assets from the estate.

In certain scenarios, such as gifts given to certain people or organizations, or a specific tax-free allowance for an agricultural or business property, the threshold could be higher, or not applicable.

It is best to consult a legal professional or accountant to ensure all the information is correctly filled and all the relevant information regarding exemptions or reductions are considered.