Frequently Asked Questions
Q How much can I leave in my estate before I pay inheritance tax.
A Anything you leave to your spouse or civil partner is free of inheritance tax.
So if the estate you leave to your spouse /civil partner runs into the millions you will still not pay inheritance tax
Q Does this apply in the same way to estate I leave to an unmarried partner?
A No-only the first £325000 of your estate passes free of inheritance tax.
The balance of your estate over £32500 is then taxed at the rate of 40%
Q How much inheritance tax will my spouse/civil partner pay on his/her estate when he or she dies after I have died ?
A In this situation the tax free amount is £650000 and then tax is charged at 40% on the balance over this figure.
Q What about gifts I have made before my death?
A Any gifts made more than 7 years before your death are not brought into account for inheritance tax
Also you are allowed to make gifts up to a total of £3000 without them being liable to inheritance tax
Q Will my estate pay any inheritance tax on specific legacies such as cash or shares?
A No they are free of tax unless you want to specifically say they are to be subject to tax
Q Di I have to pay all the inheritance tax in my estate when the application for probate is made?
A Yes except on any property where inheritance tax can be paid in 10 equal annual instalments if the property is retained but if the property is sold then the balance of the inheritance tax becomes payable