Combining these three aspects can see the last surviving spouse or partner able to pass on £1million without incurring IHT.
The standard rate of IHT is currently 40 percent, and aside from utilising the thresholds, Britons can lower this percentage by specifying where their money should go.
If a person leaves 10 percent of the net value of their estate to charity in their will, their IHT rate for the rest of their estate can be lowered to 36 percent.
Additionally, if one doesn’t want their heirs paying a large tax bill but cannot lower their liability any further, they could potentially pass on some of the inheritance before their death.
Published at Tue, 17 May 2022 20:14:33 +0000