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Inheritance Tax Rate

The inheritance tax rate is applied to the estate of a deceased individual if the value of their assets is over a nil-rate band set by the government.  It is becoming an increasingly common issue for UK citizens due to the continued rises in property prices, which have not been matched by equal rises in the inheritance tax rate threshold.  This has resulted in more people finding that some of their assets will be taxed on their death as the value of their homes pushes the overall worth of their estate over the threshold.

  • The nil-rate band of the inheritance tax rate is currently £312,000.
  • The tax rate on assets in excess of this threshold is 40%.
  • Additional exemptions and conditions can further affect the taxable value of the estate, especially with relation to gifts and transfers within the last seven years, as well as trusts and life assurance.

For expert advice on the inheritance tax rate and other inheritance matters, fill out our online form and we will put you into contact with qualified UK professionals for a free, no-obligations initial consultation.

Disclaimer: Every effort is made to keep the site accurate, however please bear in mind that tax rates are subject to change. If you require tax advice you should speak to a professional tax adviser.