Inheritance Tax

Inheritance tax

This is a complex area of the law and advice should
be obtained from qualified professionals.
	www.mablaw.co.uk
Inheritance tax is the only form of tax imposed on
the death of a person whose domicile is in the UK.
Inheritance tax affects transfers of property on death
and certain transfers made within seven years of the
death. There is no tax on property passing between
spouses. On a persons death inheritance tax is
charged on the value of the deceased persons net
estate. That is all his property and assets less all
his liabilities and debts. The amount of any gift made
during the seven years preceding the death will be
added back into  the estate to give the total value
that will be used to calculate the inheritance tax due.

Since 1998 the rate of inheritance tax has been 40%. 
There is a nil rate band of £231,00 on which no tax
will be due.

There are ways that inheritance tax can be saved and
it is important to seek professional advice when the
will is being written. 

There are some rules that will allow the adult
beneficiaries to vary the provisions of the will, within two 
years of the date of death, so that the property can
pass to them in a more tax efficient manner than would
have been the case had the provisions of the will been
put into operation. Such a variation must be agreed by 
all beneficiaries. It is essential that anybody thinking of
varying a will to obtain tax savings should take
professional advice on any likely savings and on how
to prepare the necessary documents.


			Inheritance tax This is a complex area of the law and advice should be obtained from qualified professionals. www.mablaw.co.uk Inheritance tax is the only form of tax imposed on the death of a person whose domicile is in the UK. Inheritance tax affects transfers of property on death and certain transfers made within seven years of the death. There is no tax on property passing between spouses. On a persons death inheritance tax is charged on the value of the deceased persons net estate. That is all his property and assets less all his liabilities and debts. The amount of any gift made during the seven years preceding the death will be added back into the estate to give the total value that will be used to calculate the inheritance tax due. Since 1998 the rate of inheritance tax has been 40%. There is a nil rate band of £231,00 on which no tax will be due. There are ways that inheritance tax can be saved and it is important to seek professional advice when the will is being written. There are some rules that will allow the adult beneficiaries to vary the provisions of the will, within two years of the date of death, so that the property can pass to them in a more tax efficient manner than would have been the case had the provisions of the will been put into operation. Such a variation must be agreed by all beneficiaries. It is essential that anybody thinking of varying a will to obtain tax savings should take professional advice on any likely savings and on how to prepare the necessary documents. Legals