Have you ever tried to estimate how much Inheritance Tax (IHT) may be due on your estate? You may wish to use this 'ready-reckoner' to calculate how much IHT might be due - the result may surprise you.
This is provided as a quick guide only - it does not include other reliefs and exemptions that may be applicable. It is also important to note that any gifts made in the past seven years, or entitlements you may have in existing trusts** are not included in this calculation. These may further increase your liability to IHT.
For married couples/civil partnerships, any liability to IHT may not arise until the second death, depending upon the provisions of Wills.
To quickly generate an outline assessment of IHT liability, simply insert your best estimate of the the value of your assets into each of the boxes below.
1. Main residence is left to direct descendants so qualifies for residence nil rate band.
2. Calculations for couples assume that all assets are left to survivor on first death, so form part of survivorís estate on second death.
3. IHT liability for couples assumes all properties are owned as joint tenants for residence nil rate band purposes.
4. No account is taken of any additional nil rate bands that may be available (e.g. as a result of being previously widowed).
5. No account is taken of reduced rates of inheritance tax (e.g. where some or all of estate may be left to charities, for national purposes etc).
6. Any lifetime gifts that may have been made that reduce the available nil rate band are not taken into account.
7. Calculations for couples assume they are married/ civil partners and that both are UK domiciles.
8. The value of any pension funds and other death benefits payable on death do not form part of the estate(s).
This calculator is designed to indicate whether there may be a potential inheritance tax liability in the event of death. It is not intended to provide an accurate IHT liability, more an indication, and professional advice should be sought where necessary.
If you are concerned about the effect that IHT will have on your estate and the amount of money that will be left to family and friends, we will be pleased to tell you about the range of products and services available as part of the St. James's Place Approach to Trust** and Estate Planning.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
**Trusts are not regulated by the Financial Conduct Authority.