What is Inheritance Tax?
Inheritance Tax is tax paid on the value of property, land and money that belonged to someone who has died.
These assets are called their ‘estate’. Inheritance Tax is only payable on estates over a certain value.
In 2012, Inheritance Tax is payable on all estates valued at over £325,000.
If you are the executor or representative of a person who has died, you are responsible for paying any Inheritance Tax that is due.
The estate also includes any gifts that the deceased has made during the last seven years of their life, with certain exceptions. These exceptions include direct bequests to a spouse or civil partner, and gifts made to certain charities or political parties.
If the person who has died is married, or has a registered civil partner, that spouse or partner can increase their own threshold for Inheritance Tax, depending on the amount of Inheritance Tax that was initially paid. In practice, this means that a couple’s threshold may be up to twice that of an individual.
Inheritance Tax is typically complex and seeking financial advice is recommended to ensure that you are being as tax efficient as possible.
For further Tax information, please follow the links below:
Income Tax includes:
What is income tax?
How is Income Tax calculated?
How much income tax do I need to pay?
Income Tax Allowances
Income Tax Rates and Taxable Bands
How do I pay income tax?
Tax Codes includes:
Where do I find my Tax Code?
New Tax Codes
What does my tax code mean?
Different Tax Codes
More than one job
Emergency Tax Codes
Emergency Tax Codes includes:
What is an Emergency Tax Code?
What does an emergency Tax Code look like?
Why do I have a BR/ Emergency Tax Code?
Can I get a Tax Refund if I have paid Emergency Tax?
Construction Industry Scheme includes:
CIS For Subcontractors
CIS For Contractors (Employers)
VAT (Value Added Tax) includes:
What is VAT?
When do I pay VAT?
How much VAT do I need to pay?
Do I need to register for VAT?
How do I pay VAT?
Can I claim VAT back?
Self Assessment includes:
What is Self Assessment?
Do I need to complete a Self Assessment tax return?
How do I get a Self Assessment tax return form?
How do I register for Self Assessment?
Can I register for Self Assessment on behalf of a company or trust?
What is a Unique Tax Reference number (UTR)?
How do I get a Unique Tax Reference (UTR) number?
How do I complete my Self Assessment tax return online?
Can I complete my Self Assessment tax return on paper?
Self Assessment Tax return deadlines
What if I submit my tax return late?
What if I submit my tax return incorrectly?
How is my tax calculated?
Do I need to check my tax calculation?
National Insurance includes:
What is National Insurance?
What are the different types of National Insurance?
Who pays National Insurance?
What is National Insurance used for?
Do your National Insurance payments affect your Pension and Benefits?
How much National Insurance should I pay?
Pension Tax includes:
Do I have to pay tax on my pension?
Do I have to pay tax on my state pension?
Corporation Tax includes:
Who needs to pay Corporation Tax?
How much Corporation Tax do I need to pay?
How do I pay Corporation Tax?
Capital Gains Tax includes:
What is Capital Gains Tax?