IHT charge on death

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

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:

•
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
•
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

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Employment Tax

Company cars

Company carsIntroductionCompany cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation. Detailed guidance on each of the following

14 Jul 2020 11:15 | Produced by Tolley Read more

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

��˾��ҹ��