Inheritance Tax

• Depending on the deceased’s circumstances, Inheritance Tax might also be payable on the estate. There may be a liability on an individual’s estate if it is worth more than the £325,000 tax-free allowance. Anything above this limit is taxable at 40% (based on current tax legislation). However, if the individual was married or in a civil partnership and has left their estate to their spouse or civil partner, there is usually no Inheritance Tax to pay.
• Note that, if the deceased owned a property, you will need to have a reasonable estimate as to its value before applying for Probate or finding out whether Inheritance Tax will need to be paid. In addition, some gifts made by the deceased during their lifetime may be subject to Inheritance Tax dependant on their value, purpose and date when they were given. If Inheritance Tax is payable, it must normally be settled before Probate can be granted and, in any case, before the end of the sixth month following the deceased’s death. Applying for Probate and working out if you need to pay Inheritance Tax on the estate can be a lengthy and complicated business so it is best to get professional advice if you are not confident about the subject

If you need further advice or have any questions please call us on:

0300 13 123 53