Understand how inheritance tax may affect property transfers and what steps to take to prepare your estate.
Inheritance Tax (IHT) applies when someone passes away and their estate exceeds the tax-free threshold—currently £325,000 (plus an additional £175,000 allowance for property passed to direct descendants).
Key facts about IHT and property:
- The tax is charged at 40% on the value above the threshold.
- Property often represents the largest part of an estate.
- Married couples can combine allowances, doubling the tax-free threshold.
Planning ahead:
- Keep your will up to date.
- Discuss gifting options and trusts with a solicitor or tax advisor.
- Consider how the property will be passed on (e.g., sold or transferred).
If you’ve inherited a property, it’s important to understand your responsibilities. Conveyo can assist with probate sales by coordinating the legal work efficiently and clearly.