Inheritance Tax Bristol

Inheritance tax (IHT) is payable where a deceased's estate exceeds £325,000. This £325,000 figure includes the deceased's share in any jointly owned assets, assets held in some types of trust, and some lifetime transfers. IHT is only payable on the excess above £325,000.

If your estate passes to your husband or wife or civil partner and you are both domiciled in the UK then there is no IHT to pay even if your assets exceed £325,000.

Where the deceased's estate exceeds £325,000 and the spouse exemption doesn't apply then tax is charged at the rate of 40% on assets in excess of £325,000.

Inheritance tax is payable within 6 months of the end of the month of death. In certain circumstances an instalment option is available where payments can be made over a 10-year period, but interest will be charged in these situations.

The responsibility for paying IHT lies with the deceased's executors or administrators (the personal representatives). The personal representatives can raise funds from the deceased's assets to pay for the IHT. You will need to obtain a receipt from HMRC that the IHT payment has been made before you can obtain the Grant of Representation.

The IHT forms are both lengthy and complicated. Before you complete those forms you need to collate details of the deceased's assets and liabilities and ascertain whether any exemptions are applicable. Where the deceased is a surviving spouse who may have received a benefit from the first spouse's estate, there may be a transferable nil rate band available from the death of the first spouse thus increasing the IHT threshold to £650,000.

Other Helpful Links

Direct Gov - Inheritance Tax - the basics

Team contact

If you would like any further information then please do not hesitate to contact:

Vanessa Eyre or

Samantha Piper

In the event that Vanessa or Samantha are not available then please ask to speak to a member of the Personal Estate Planning Team.


Other Bristol Lawyer websites

Will Solicitor Bristol
Will Lawyer Bristol
Register Death Bristol
Executors Law Bristol
Probate Law Bristol
Intestacy Law Bristol
Intestacy Solicitor Bristol
Power of Attorney Law Bristol
Power of Attorney Lawyer Bristol
Power of Attorney Solicitor Bristol
Grant Probate Bristol
Probate Lawyer Bristol
Probate Solicitor Bristol