Each individual domiciled in the United Kingdom has the benefit of the “nil rate band” upon which no Inheritance Tax is payable (currently £325,000). There is also no charge to Inheritance Tax where assets pass to a surviving spouse.
Beyond that, each individual’s estate will be subject to Inheritance Tax at 40%. There are, however, a number of options which can be used for effective Inheritance Tax planning and so it is important to utilise these to ensure that your wealth passes to your beneficiaries rather than to the government.
