All individuals receive an allowance whereby estates under this figure will not be liable to the payment of IHT. The assets taken into consideration could be property, investments, cash & chattels and it is the value placed on this that will determine whether or not IHT needs to be paid.
The current thresholds - Budget 2013
Single person £325,000*
Married couple up to £650,000*
The value of the estate above these figures is then taxed at 40% *
Estate passing between husband and wife does so without any liability to IHT, however on second death the estate then becomes liable if it exceeds £650,000 ( providing the full allowance is still available)
Please contact us if you require further information on this subject.
*These figure are liable to change by the Government and should always be verified at the time of making a Will or creating a Trust.