PROBATE AND INHERITANCE TAX
Inheritance tax rate
Depending on the size of the estate there may inheritance tax (IHT) to pay.
The current rate of inheritance tax is 40% on assets above £325,000 in 2010/2011.
Inheritance tax reliefs : Nil Rate band and Spouse Exemption
Everyone is exempt from Inheritance tax upto £325,000, this is known as the Nil Rate band. All assets passing between spouses are also exempt from Inheritance Tax this is known as the, Spouse exemption.
Inheritance tax reliefs : Transfer of Unused Nil rate band
As assets passing between spouses do not use any Nil Rate Band, this then enables the second spouse’s estate to utilise any of the unused Nil rate band, upto £650,000. The claim for the transfer of the unused Nil Rate band is made when the Inheritance tax return is submitted and there are a number of strict rules that must be adhered, when claiming the transfer of the unused Nil Rate band on the death of the second spouse. If you need Inheritance Tax help our advice, we have dedicated team that assist clients across the UK