Inheritance Tax is payable on:
- any chargeable transfers you make during your lifetime; and
- the value of your estate on death.
There are a number of exemptions and reliefs which, if optimized, can reduce the amount of tax payable, perhaps significantly.
As with all types of direct taxation, husband and wife are treated as separate individuals.
Inheritance Tax is administered by the inheritance tax offices of HMRC in England and Scotland, to whom all Returns, Accounts and payments of tax should be submitted.
Some of the aspects of the tax, particularly those relating to agricultural and business property as well as transfers into Trusts, are complex. Therefore, what follows is a resumé of the main areas of the tax which are ...