Inheritance Tax or IHT
A few brief details on Inheritance Tax or IHT, such as who has to pay for it? Whats it for? and how much will I have to pay? etc…
Inheritance Tax is a tax payable on a persons death based on the value of their estate and certain significant gifts made during their lifetime. Inheritance Tax must be paid within 6 months of death and interest will be due on this amount.
Inheritance Tax has a threshold amount of £300,000, below this amount you will avoid paying anything.
What is covered by Inheritance Tax ? All your worldly goods such as property, vehicles, household contents, bonds, shares, bank accounts. You deduct any provable dues such as funeral expenses, bills, charity donations etc. Assets-Deductions-Exempt items-Threshold(£300,000)=Inheritance Tax Consideration.
Inheritance Tax is charged at 40%.
Read more about Inheritance Tax at the official HMRC site