Your Will, your legacy: what tax will be payable on my death in the UK?
Note: We have provided a transcript of the video if you are unable to listen to the audio. This transcript is generated using a combination of speech recognition software and human transcribers and may contain errors.
In the UK the main tax when you die is inheritance tax, which you'll often hear referred to by the acronym IHT. Whether or not IHT will apply to you on your death depends on your domicile. If like me, you're from the UK generally you'll have a UK domicile, which means you'll be subject to IHT on all your assets whether or not they are located in the UK. If you have a non-UK domicile, you'll only be subject to IHT on your UK assets. So if IHT applies, how much is going to be payable on your death? Well, the starting point is that IHT is charged at 40% on the value of your assets at the time of your death. But that's only part of the story, because there are exemptions and reliefs that can apply depending first on the types of assets you own, and secondly to who those assets pass following your death. Assets that pass to a charity or to a surviving spouse, a husband, wife, or civil partner are generally exempt from IHT. Equally, there are reliefs for certain types of business property and agricultural property.
In the UK the main tax when you die is inheritance tax which you will often hear referred to as “IHT”.
Whether or not IHT will apply to you depends on your domicile. Generally, if you’re from the UK, you will have a UK domicile which means you will be subject to IHT on all your assets whether or not they are located in the UK. If you have a non-UK domicile you will only be subject to IHT on your UK assets. So if IHT applies to you how much is going to be payable on your death? The starting point is that IHT is charged at 40% on the value of your assets at the time of your death. That is only part of the story because there are various exemptions and reliefs that can apply depending first on the type of assets you own, and secondly onto whom those assets pass when you die. Assets that pass to charity or to a surviving spouse (husband, wife or civil partner) generally aren’t subject to IHT. Equally there are valuable reliefs for certain types of business and agricultural property.
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Note: We have provided a transcript of the video if you are unable to listen to the audio. This transcript is generated using a combination of speech recognition software and human transcribers and may contain errors.
In the UK the main tax when you die is inheritance tax, which you'll often hear referred to by the acronym IHT. Whether or not IHT will apply to you on your death depends on your domicile. If like me, you're from the UK generally you'll have a UK domicile, which means you'll be subject to IHT on all your assets whether or not they are located in the UK. If you have a non-UK domicile, you'll only be subject to IHT on your UK assets. So if IHT applies, how much is going to be payable on your death? Well, the starting point is that IHT is charged at 40% on the value of your assets at the time of your death. But that's only part of the story, because there are exemptions and reliefs that can apply depending first on the types of assets you own, and secondly to who those assets pass following your death. Assets that pass to a charity or to a surviving spouse, a husband, wife, or civil partner are generally exempt from IHT. Equally, there are reliefs for certain types of business property and agricultural property.
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