Rate Of Tax

Working out the tax due is quite straightforward in most cases unless you have given away so much money that the cumulative seven year total exceeds £110,000 at any time within the last seven years. If you have, you can probably afford to get private advice from a specialist solicitor or accountant, and I strongly advise you to do so!

In order to work out what level of inheritance tax your heirs would face if you died tomorrow, write down the gifts you have made in the last seven years.

Remember to take away the exemptions set out above from each year's total gifts. Then add on the value of your house less any outstanding mortgage (if you do not own your house, there is far less likelihood of your having to pay inheritance tax) and any other assets which will pass to your heirs. Remember to include your furniture and effects within the house and any motor car you have.

It does not matter how many people you share them among, the same tax will be due on the total.

If the total is below £110,000, you will not have to worry about inheritance tax.

If it is above that amount, inheritance tax will be due. There is now one rate of 80%.

Other webpages of interest - Capital Tax Example

or Minimizing Inheritance Tax

Capital Tax Example

/investments/tax/capital-tax-example.php... see: Capital Tax Example