Exploding the myth about Inheritance Tax

What is the most unpopular tax in the UK? Polls suggest the answer is inheritance tax. But I wonder why. Sometimes our perception is not borne out by the facts.

Did you know that only about 4% of estates are actually liable to pay it? And that means 96% are exempt, for various reasons.

Generally speaking, no inheritance tax is due on estates with a gross value of less than £325,000. Estates valued up to £1m are also exempt if they are passed to a spouse or civil partner or a charity. And if your permanent home is abroad, inheritance tax is only paid on UK assets valued at more than £150,000. This could include property or bank accounts held in the UK.

As usual with these sorts of things there are many complex caveats. Assets held in trust can complicate matters. So can foreign assets, gifts made within seven years of the death and a spouse not resident in the UK.

This is when it’s best left to the professionals to navigate a safe path through the legal minefield. For expert help with the probate process, contact Heritage Will Writing on 02380 879243.