Inheritance Tax

Inheritance tax is a tax levied on the estate of a deceased person. The estate includes all of the person's assets, both real and personal, as well as any debts. The tax is calculated on the net value of the estate, which is the total value of the assets minus any debts.

The amount of inheritance tax that is owed depends on the value of the estate and the person's relationship to the deceased. For example, a spouse or child of the deceased is entitled to a tax-free allowance of £325,000. This means that the first £325,000 of the estate is not subject to inheritance tax. Any amount above this is taxed at a rate of 40%.

There are a number of exemptions and reliefs that can be claimed against inheritance tax. For example, there is an exemption for gifts that are made during the person's lifetime. There is also a relief for agricultural property and for business property.

Inheritance tax is a complex tax, and it is important to get professional advice if you are unsure about your liability. A financial adviser can help you to calculate your inheritance tax bill and to claim any exemptions or reliefs that you may be entitled to.

Here are some additional details about inheritance tax:

* The inheritance tax threshold is the value of the estate below which no inheritance tax is payable. The threshold is currently £325,000.
* The inheritance tax rate is 40% on the value of the estate above the threshold.
* There are a number of exemptions and reliefs that can be claimed against inheritance tax. For example, there is an exemption for gifts that are made during the person's lifetime. There is also a relief for agricultural property and for business property.
* Inheritance tax is a complex tax, and it is important to get professional advice if you are unsure about your liability. A financial adviser can help you to calculate your inheritance tax bill and to claim any exemptions or reliefs that you may be entitled to.