Inheritance Tax (IHT) is a tax on the estate (property, money, and possessions) of someone who’s died. The standard threshold is £325,000—if your estate is worth more than this, anything above the limit may be taxed, usually at 40%. There are reliefs and exemptions that can reduce or eliminate the bill, including transfers between spouses and gifts to charity. Careful planning can help keep IHT to a minimum.
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