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Inheritance tax calculator
Without tax planning, many people can end up leaving a substantial tax liability on their death so that bequests can have a much lower value than anticipated. In some cases, the tax burden left on beneficiaries, particularly in respect of property, can result in the beneficiaries having to sell rather than retain the asset in order to meet the tax liability. Although transfers between husband and wife are tax free, such transfers really only postpone the tax liability because tax is payable on the estate of the surviving spouse.
Inheritance tax (IHT) is currently charged at 40% on the value of estates above £285,000 for deaths occurring after 6th April 2006. This may seem to be a relatively high figure but it can easily be reached when taking into account the value of property, life policies and savings. It is also worth bearing in mind that the value of some assets, particularly property, may have increased significantly since they were purchased. As announced by Gordon Brown in his March 2005 budget, the threshold is increased to £300,000 for 2007-2008.
On this page, we have provided a simple calculator which takes into account the values of main assets and liabilities to give some idea of the inheritance tax which might be payable. You should bear in mind that what matters for this purpose is the value of your estate at your death.
Assets
Liabilities
