Inheritance Tax is the tax levied by the government on your estate i.e. everything you own at the time you die.
IHT is currently charged at 40% on the net value of your assets above the nil rate band of £325,000 (2011/12 tax year). Your assets include your main residence, any other properties you own, cash, savings and investments, cars, boats, personal possessions (e.g. jewellery) and also the value of any life assurance policies.
When you die, Inheritance Tax can present difficulties for your beneficiaries. An Inheritance Tax bill must usually be paid before your estate is distributed to your beneficiaries.
Careful planning and making full use of your Inheritance Tax allowances and exemptions can significantly reduce or mitigate any potential Inheritance Tax liability.
The above information is based on our current understanding of Inheritance Tax which is liable to change and is dependent upon individual circumstances.
If you would like to know more about Inheritance Tax Planning, please contact your local branch to speak with a Financial Planner.
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