IHT (Inheritance Tax)

Inheritance Tax (IHT) is a tax imposed on the estate of a deceased person, which includes their money, property, and possessions. In the UK, if the estate's value exceeds a certain threshold (currently £325,000), the portion above this limit may be taxed at 40%. There are exemptions and reliefs, such as for gifts made before death or passing property to family members, which can reduce the tax burden. IHT is typically paid by the estate before assets are distributed to heirs. Proper estate planning can help minimize potential tax liabilities.