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Inheritance Tax (IHT)

Many people believe that Inheritance Tax is only for the rich. Although there is no liability on death if the Estate is less than the nil-rate band (£325,000 in 2009-2010) or where the Estate is left to exempt beneficiaries such as surviving spouse or a charity.
However your Estate could be liable to IHT which is levied at 40% on all assets over the nil-rate band (NRB).
Clearly this depends on your particular circumstances (previous gifts you have made) and whether you have an effective and valid Will in place…….
How Much Inheritance Tax Could You Pay?

ESTATE VALUE
TAXABLE
IHT Payable @ 40%
£325,000 or less
£0
£0
£350,000
£25,000
£10,000
£400,000
£75,000
£30,000
£500,000
£175,000
£70,000
£600,000
£275,000
£110,000
£700,000
£375,000
£150,000
£800,000
£475,000
£190,000
£900,000
£575,000
£230,000
£1 Million
£675,000
£270,000
IHT is often called the 'voluntary tax' as with good advice and careful planning it can be reduced or avoided altogether. The amount to be paid is largely decided by the actions you take BEFORE you die. Its important that you take steps now to protect your estate and reduce the share the tax man takes.