Inheritance tax is a tax charge on your estate should your estate exceed the current nil rate band threshold. The current IHT threshold is £325,000 per person and this can be transferred between married couples/civil partners.
Inheritance Tax is usually charged at 40% on any amount over the threshold.
There is an additional residence nil rate band available for passing on your residence to direct descendants. This is currently £175,000 and again, can be transferred between married couples/civil partners.
If you would like to know more about how Inheritance Tax affects estates, click here or call us on 01920 449700. We can give you the information you need to deal with IHT mitigation efficiently and offer advice on the various payment options.