Q: What is the inheritance tax threshold?
The threshold was £325,000 in 2011 to 2012.
It was set at this level in 2009 to 2010 and has been frozen for five years to the 2014 to 2015 tax year.
The nil rate band that is taxed at 0 per cent.
The total taxable estate on death is the value of a UK domiciled person’s combined net assets, wherever in the world these assets are situated, and includes property, investments and personal effects.
After using the available nil rate band, the remainder of a person’s estate will be charged 40 per cent IHT.
Since October 2007, married couples and registered civil partners have been able to transfer any unused NRB available on the death of the first spouse, to the surviving spouse.
The transferable nil rate band does not apply automatically, warned Irvine Baxter, UK sales director at Friends Provident International.
The personal representatives need to make a claim within two years of the death of the surviving spouse.
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