In the UK, Inheritance Tax (IHT) is a tax that is levied on the value of a person’s estate (their property, money, and possessions) when they die. It is also known as “death duty.”
In the UK, IHT is payable if the value of an individual’s estate exceeds the threshold, which is currently £325,000. The tax is levied at a rate of 40% on the value of the estate above the threshold. There are some exemptions and reliefs that can reduce the amount of IHT that is payable.
IHT is generally paid by the executor or administrator of the deceased person’s estate, and it must be paid before the estate can be distributed to the beneficiaries.
It’s important to note that IHT rules can be complex and may vary depending on an individual’s circumstances. It is advisable to seek professional advice if you are concerned about IHT and how it may affect your estate.