The following Private Client practice note provides comprehensive and up to date legal information covering:
The calculation and apportionment of inheritance tax (IHT) due on death can be complex, especially taking account of trust interests, chargeable lifetime transfers, the potential mix of exempt and non-exempt beneficiaries, available reliefs and the basic nil rate band (NRB) and residence nil rate band (RNRB). For further information on calculating IHT on death, see Practice Note: Calculating the inheritance tax (IHT) charge on death, which also contains links to further resources.
While HMRC is concerned only with ascertaining and collecting the correct total amount of IHT (and interest) payable following an individual’s death, the beneficiaries of the individual’s estate will want to be sure that the IHT burden has been correctly allocated and that their legacy has benefited from all relevant reliefs and exemptions in the correct proportions. The correct allocation of IHT is the responsibility of the personal representatives (PRs).
Once the total IHT on the estate is calculated, it is usually necessary to work out how much IHT is attributable to each legacy and to the residuary estate and ascertain the respective pots from which it should be paid.
In terms of payment of the IHT, where there is no contrary provision in the deceased’s Will, IHT due on the deceased’s UK free estate (ie not settled property) which vests in the PRs is
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Multilateral Trading Facilities (MTFs)BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and
What is a third party debt order (TPDO)?This Practice Note explains what a third party debt order (TPDO) (previously known as garnishee orders) is as a means of enforcing a judgment debt, with reference to CPR 72. The order directs a third party who owes money to the judgment debtor to pay that
No deal Brexit—jurisdiction (UK and the Lugano Convention) [Archived]ARCHIVED: This Practice Note has been archived and is not maintained.This Practice Note has been produced in partnership with Guy Pendell, Liz Williams and Kushal Gandhi of CMS.This Practice Note covers the situation where the UK
Commercial Property Standard EnquiriesThe Commercial Property Standard Enquiries (CPSE) have become the industry standard pre-contract enquiries for commercial property transactions:•CPSE.1 (version 3.8) General pre-contract enquiries for all commercial property transactions•CPSE.2 (version 3.4)
0330 161 1234