A Brief About Inheritance Tax Thresholds

Posted on June 25, 2022Categories Business and ManagementTags ,

This article discusses the inheritance tax thresholds across countries, examining how varied inheritance tax thresholds can be found in different countries. It also provides advice on how to avoid paying inheritance taxes following the death of an individual.

The inheritance tax threshold in the UK  is the amount of inheritance that is exempt from UK tax.  There are also additional inheritance tax exemptions for certain types of trusts and estates.

The inheritance tax threshold applies to all individuals and couples who are residents in the UK and who have any taxable estate worth more than the threshold. The threshold increases gradually with inflation, so it will rise to £1 million by 2020.

If you are not resident in the UK but your estate is worth more than the Inheritance Tax Threshold, then you will still have to pay UK Inheritance Tax on any amounts above the Inheritance Tax Threshold.

However, there are a few things you can do to reduce the amount of inheritance tax you have to pay. The Inheritance Tax threshold in the UK for 2016/17 is £325,000. This means that if you are married and your spouse's estate is below this figure, you will not have to pay any inheritance tax on any of the assets passed onto you.