Inheritance Tax
IHT is a tax imposed on the value of a deceased's estate at the date of death. The first £285,000 of the estate is free of tax and the excess above that amount is chargeable at 40%. Thus with an estate of £385,000 the first £285,000 is free of tax and the remainder is liable for IHT at 40% namely £40,000 tax.
There are certain exemptions/reliefs available that will reduce the liability for example:
- Assets passing to the surviving spouse
- Gifts to charities
- Agricultural relief
- Business relief
Garden House solicitors can advise you how to reduce the tax liability by making gifts and creating a Nil Rate Band Discretionary Trust.
