Inheritance
Tax - Example Calculation
Download our
inheritance tax factsheet.
Set
out below is a simple example of an inheritance tax
calculation.
| Assets |
Value on Death |
| House |
£312,000 |
| Car |
£5,000 |
| Personal Belongings |
£35,000 |
| Investments |
£60,000 |
| Total Assets |
£412,000 |
The first £312,000 of assets are
free of inheritance tax.
|
|
|
All subsequent assets are subject to
Inheritance Tax at 40%
Therefore:
£412,000 - £312,000 = £100,000
Total Tax Bill £40,000
This inheritance tax must be paid
before any money can be distributed to the beneficiaries under the
will.
Married couples and civil partners
If the first to die does not use their threshold for inheritance
tax, and passes all their assets to the survivor, this will be free
of tax on the first death.
The second to die can then take the threshold
from the first, effectively doubling their threshold to £624,000
(providing the first to die did not use this threshold when they
died).
We offer a comprehensive
inheritance tax report. Click here to find out more.
Click here to view our
newsletters on inheritance tax planning.
For
a complete inheritance tax calculation, please contact us.
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For
United Kingdom residents over 18 only. © 2003 - 2008 Woodruff Financial
Planning.