The annual Inheritance Tax (IHT) receipts received by HMRC in 2021/22 reached £6.1 billion. IHT looks at an individual’s estate on death and reviews transfers during the seven years prior to death; in some instances, this extends to fourteen years.
The standard rate of IHT is 40%, imposed on an estate value after the various available exemptions and reliefs. IHT is due six months after the end of the month in which the death occurs. The Direct Payment Scheme form IHT423 allows the deceased’s available bank funds to cover this.
At EAG Tax we can calculate your current IHT exposure and work with you to structure your plans tax efficiently. Should you have concerns regarding specific business tax reliefs, we can review assets of concern and advise on how to strengthen the position.
Useful links:
- https://www.lawsociety.org.uk/public/for-public-visitors/common-legal-issues/making-a-will
- https://www.nhs.uk/conditions/social-care-and-support-guide/making-decisions-for-someone-else/giving-someone-power-of-attorney
- https://www.gov.uk/when-someone-dies
- https://www.thegazette.co.uk/wills-and-probate/place-a-deceased-estates-notice
- https://www.gov.uk/search-will-probate
- https://www.ageuk.org.uk/information-advice/care/paying-for-care
- https://www.cqc.org.uk
