Inheritance Tax(IHT)

IHT is now affecting an increasing number of people and is payable upon death on any net estate valued over £325,000 (Nil Rate Band - NRB).

IHT is payably on death usually at the rate of 40% on the nett estate above the Nil Rate Band.

The value of your estate is normally calculated by adding up all your assets e.g. home, investments, money less yours debts at the date of death.

You can now carry over a deceased spouse/civil partners unused NRB so that £650,000 can be utilised on second death.

The below table shows a simple overview of the tax bill that your loved one could be faced with upon your death. These IHT figures maybe significantly more than what you had envisaged and may result in your loved ones receiving less than you intended.

Value of estate

IHT payable upon death

 £350,000  £10,000
 £500,000  £70,000
 £750,000  £170,000
 £1 million  £270,000
 £1.5 million  £475,000
 £2 million  £670,000
 £3 million  £1.07 million
 £5 million  £1.87 million

Potentially Exempt Transfer (PET)

This is an effective way to reduce the IHT payable upon your death as it is an outright gift to another person during your lifetime. The value of the gift can be free of IHT provided that you survive a minimum of seven years after the date the gift is made. 

Other Taxes

We at WEP are committed to providing you with expert tax solutions on your entire estate, ensuring that you are making the most of all reliefs and allowances available to you during you lifetime and upon your death.