Will I have to pay inheritance tax (IHT) on my death?

Sharing helpful blog wording from the Association of Lifetime Lawyers https://lifetimelawyers.org.uk/ about this. IHT charged on an individual's death is based on the value of their net estate immediately before death.

IHT is payable on transfers of value, which can be made when an individual makes certain gifts during their lifetime or when an individual dies.

Everyone has a nil rate band (NRB) allowance of £325,000, which is transferable between spouses and civil partners. This gives a cumulative value of £650,000.

Should you own a property you also have an additional allowance known as the residence nil rate band (RNRB) allowance. This allowance is £175,000 per individual and is also transferable between spouses and civil partners. This gives a cumulative value of £350,000.

The IHT rate is 40% and is reduced to 36% should you leave 10% of your net estate to a qualifying UK-registered charity.

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