Threshold for inheritance tax in uk

threshold for inheritance tax in uk

Threshold for Inheritance Tax in UK (IHT) is paid when a person estate worth is more than 325,000 pounds when they die. Threshold for Inheritance in UK is usually paid on the property, money, and the possessions of the one who is died.
Normally in UK inheritance tax is not applicable if.
1.The value of the estate is below the amount 325,000 threshold
2.If you leave everything above 325,000 pounds to your spouse, civil partner, a community sports club or a charity fund or charity organization.
3.However if the estate value is below the threshold in such cases you still need to report it to the HMRC.
4.In the case if you give your home to your children (step children, foster, and grandchildren) included than in such a case threshold can increase to 500,000 pounds.

Threshold for Inheritance Tax in UK Rate

The standard tax rate applicable in UK is 40% and it is only charged if the part of your estate is above the threshold. For example if your estate is worth 500,000 pounds while your tax free threshold is 325,000 pounds than in this case the inheritance tax will be 40% of the 175,000 pounds i.e. 70,000 pounds.

Reliefs and Exemptions on the Threshold for inheritance tax in UK.

There are also the reliefs and exemptions on the applicable inheritance taxes in UK, that is too lengthy to get explained here, contact Apex Accountants at or call at +44 20 3883 4777 to claim reliefs and exemptions your standard inheritance tax in UK.

 Who Will Pay to the HMRC?

Funds from your estate are to get paid in the form of the inheritance tax to the HMRC. It is done by the person who is dealing with the estate and there are plenty of issues involved in it, in this case Apex Accountants ( will handle all. Reach us at or call at +44 20 3883 4777 for the instant resolution of all your accounts, finance, and tax related matters.

How To Pass Home?
You can pass your home to your wife, husband or a civil partner in case you die. In this case there is no inheritance tax to pay, contact us at or ping us at +44 20 3883 4777 and our financial specialists will explain you the all. There is also no threshold inheritance tax in uk applicable if you move out and live for another 7 years