Inheritance Tax Rate

The Inheritance Tax Rate is 40% This applies to everyone, regardless of the rate of tax that they paid during their lifetime.

Once the value of your assets reach £312,000 (or £624,000 for married couples and civil parners), your assets will attract the inheritance tax rate of 40%

So, for example, if the value of your estate is £412,000, your tax bill will be £40,000. This must be paid by your personal representatives. If you are a married couple, or civil partner then your combined assets will need to exceed £624,000 before you are taxed 9on the second death).

The only exceptions to this inheritance tax rate are gifts. These can be potentially exempt - and therefore have an inheritance tax rate of 0% Otherwise, there are some lifetime chargeable transfers (essentially gifts to certain types of trusts), which attract an inheritance tax rate of 20% during the lifetime of the person making the gift, and a further 20% on their death.