When is Inheritance Tax due?

RED-top tabloids refer to it as a ‘death tax’. But that may be considered a tad unfair.

In fact, inheritance tax is only due if the value of your estate – which does include your home – is valued at more than £325,000. And anything left to a spouse or a civil partner or a charity or a community amateur sports club is not taxed. Those exceptions aside, anything over the threshold is charged at 40%.

Are there any forms to fill in? Is the Pope Catholic? For estates worth more than £325,000, you need to apply for probate using Form PA1 and complete Form IHT421, which gives details of all assets. These need to be sent, along with the will and the death certificate, to the Probate Registry.

Any more? I’m afraid so. Form IHT400 needs completing and sending to Her Majesty’s Revenue and Customs, commonly known as the taxman.

One thing to bear in mind is that unused tax allowances or spouses who died first can be used on the death of the survivor. But you may need professional help in situations like this.

Contact Heritage Will Writing on 02380 879243 for expert help with the probate process.