Inheritance tax was introduced in 1975 to replace estate duty and was called capital transfer tax until 1986. The tax is charged on transfers of capital by individuals. It may be payable on the value of an estate on death and is sometimes payable on certain lifetime gifts.
Tax is payable at 40% on the amount over the nil rate threshold of £325,000. The estate qualifies for a reduced rate of 36% where 10% or more of the net estate is left to charity.
Certain transfers are not taken into account for inheritance tax purposes and this provides a number of planning opportunities for wealthy individuals wishing to minimise their exposure to taxation.
Please contact us and ask for additional information on any of the following topics:
- Inheritance tax planning
- Making a will and other related matters
- Does your estate planning pass the test?
- Supporting your children
- Tax aspects of your home