Inheritance Tax is the tax which is payable on death on your “Estate” which is your assets less any debts.
There are some instances where inheritance tax is paid on lifetime gifts.
Inheritance tax will only be charged if your Estate exceeds the threshold of £325,000.00 ( 2009/2010 tax year) which is known as the “Nil Rate Band”.
This charge is subject to various exemptions and reliefs, including gifts to your spouse, charitable gifts and certain other gifts for example wedding gifts (up to £5,000.00).
Inheritance tax may also be payable on gifts into trusts. Please contact us if you wish to obtain further advice in relation to inheritance tax.