Inheritance tax is a tax on the estate (the property, money and possessions) of someone who’s died.
There’s normally no Inheritance Tax to pay if either;
- the value of your estate is below the £325,000 threshold
- you leave everything to your spouse or civil partner, a charity or a community amateur sports club.
- If the estate’s value is below the threshold, you’ll still need to report it to HMRC
- If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren, your threshold will increase to £450,000.
- If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die. This means their threshold can be as much as £90,000.
The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold.
Inheritance Tax, does not have to be confusing, speak to us at Certainty, we will advise you further and be happy to clear up the confusion.
If you would like to know more and how it could affect you, please call us to discuss it further.