Inheritance tax is paid from the estate of someone who has passed away, if their estate is above a certain threshold.

However, a number of reliefs and exemptions are available. Currently, inheritance is not paid on anything under £325,000, which is known as the nil rate band. Anything over this threshold is normally taxed at a rate of 40%, but the threshold or rate can change in certain circumstances. For example, gifts to your spouse, other family members and charities can reduce the amount of inheritance tax you pay.

If you leave 10% or more of your estate to charity, then your estate will qualify for a reduced rate of inheritance tax, at 36%.

What can I do about inheritance tax?

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As a beneficiary of a Will after someone has passed away, you can make a Deed of Variation to make the estate more tax efficient.

 

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Request your free Planning for the Future pack to find out more

Are you looking for information about legal issues, particularly if you or your family are affected by dementia? Alzheimer’s Research UK have developed a pack with information on Wills, Inheritance Tax, Lasting Powers of Attorney and paying for care. It comes packaged in a folder for you to keep safe and store with your other important documents.

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This page, guide and videos are for information purposes only and do not constitute personal planning for the future advice. Alzheimer’s Research UK always recommend you seek independent advice from a solicitor or tax advisor to meet your personal needs. Alzheimer’s Research UK will not accept liability for any loss, damage or inconvenience arising as a consequence of any use of or the inability to use any information on this website.