"In this world nothing can be said to be certain, except death and taxes." (Benjamin Franklin)
Inheritance Tax (IHT) is evidence of this!
All individuals receive an allowance whereby estates under this figure will not be liable to the payment of IHT. The assets taken into consideration could be property, investments, cash & chattels and it is the value placed on this that will determine whether or not IHT needs to be paid.
The current thresholds
Single person £325,000*
Married couple up to £650,000*
Residential Nil Rate Band
Single person £175,000*
Married couple up to £350,000*
The value of the estate above these figures is then taxed at 40% *
NB: Estate passing between husband and wife does so without any liability to IHT, however on second death the estate then becomes liable if it exceeds £650,000 (providing the full allowance is still available) There may also be an additional £350,000 of relief available if the Residential Nil Rate Band applies.
*These figure are liable to change by the Government and should always be verified at the time of making a Will or creating a Trust.