For some people, the Inheritance Tax (IHT) thresholds can seem a long way off. But when they pass away, their estate faces a significant tax bill that hadn’t been expected. It can be easier than you think to inadvertently cross IHT thresholds.
When is IHT paid?
Inheritance Tax is a tax on your estate after you’ve passed away, reducing how much you leave behind for loved ones. The standard rate of IHT is 40%. However, the majority of estates aren’t liable for IHT because they fall below thresholds.
Nil-rate band: If ...