| UPDATED: 11:34, Tue, Mar 9, 2021
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Inheritance tax can be levied on the estate of someone who has died and is passing on their assets. IHT will usually be charged at 40 percent on estates valued higher than £325,000 but there will normally not be anything to pay if everything above the £325,000 threshold is left to a spouse, civil partner or a charity.
| UPDATED: 15:23, Wed, Jan 20, 2021
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Inheritance tax is payable on the estate of someone who has passed away, and is set at 40 percent above a particular threshold. Generally, this threshold is set at £325,000, but can vary dependent on a person’s circumstances. For those who are left behind with a tax bill to meet, the burden can often be significant, and many will be looking for ways to reduce, or even eliminate their tax liabilities.
“They may reflect changing asset values or exemptions and tax reliefs being allowed. The increase in the number of repayments could also reflect changes in HMRC administrative processes.”
But IHT can be complex, and it is important for Britons to understand how the tax system works.
Ms Neale added: “Broadly speaking, IHT is designed and administered so that where assets are realised by the executors within a reasonable period of death IHT is charged on the sale price, rather than the value at death.
“This is because for many asset classes, such as property, valuation is an art and not a science and their value is a matter of opinion and negotiation.