On death, if the value of your estate is worth more than the tax-free allowance, known as the nil-rate band, Inheritance Tax (IHT) may be charged at the rate of 40% on the excess over the nil-rate band. Currently the nil-rate band is £325,000.
We can advise you of the IHT implications on your death and on any lifetime IHT planning you may like to consider reducing the IHT payable on your death.
In addition to the nil-rate band, there is also the residence nil-rate band (RNRB) which provides an additional IHT allowance in respect of a property if certain conditions are met. Currently the RNRB is £175,000 and we can advise whether this is relevant to your personal circumstances.
Certain assets that you own may not be subject to IHT on your death, for example, assets transferred between spouses, if they qualify for Business Property Relief or Agricultural Property Relief. We can advise you how to maximise these valuable reliefs.