Inheritance Tax (IHT)
Inheritance Tax is a tax paid by a person who inherits money, assets, or property from someone who passed away. It’s also referred to as “IHT”.
The Inheritance Tax rate is 40% above a threshold of £325,000. This threshold can increase to £500,000 if your parent is leaving you their main home.
You don’t need to worry about paying IHT if:
- the value of the estate you receive is less than £325,000
- or if the person leaving you the estate is your spouse or civil partner
- or if they gift you everything seven years before they pass away.
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