IHT charge on death

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

IHT charge on death

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

This guidance note outlines how to calculate the amount of inheritance tax that arises on death. It should be read in conjunction with the example calculations indicated in the text.

The tax charge on death falls under two headings:

  1. the ‘additional charge’ ― which arises on the chargeable lifetime transfers (CLT) and the potentially exempt transfers (PET) made in the seven years before death, and

  2. the ‘estate charge’ ― which arises on the value of all the property the deceased owns (or is deemed to own) immediately before death

HMRC has produced an Online IHT checker to give an estimate of the IHT due. HMRC warns, however, that this does not calculate the IHT (it merely estimates) and is not a substitute for the required reporting procedures.

The rates of IHT

When a chargeable transfer is made, whether during lifetime or on death, part or all of it may fall within the nil rate band. Technically, a 0% rate of tax is applied to this portion, which is calculated using

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more Read more

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more Read more

VAT registration ― artificial separation of business activities (disaggregation)

VAT registration ― artificial separation of business activities (disaggregation)This guidance note should be read in conjunction with the VAT registration ― compulsory guidance note and is relevant to persons established or resident in the UK. Persons that are not established or resident in the UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more