Inheritance Tax

[Ric.ror]

What is the upper limit before inheritance is paid

[Didwot]

After deducting all gifts to ones spouse, and to charities, there is a nil rate band of �275,000 on the net estate, after which the rate leaps to 40%. However certain lifetime gifts made within the preceding 7 years can be added back in to tthe value of the estate to calcualte the IHT liabilityy.

[spudqueen]

The 40 per cent is only on the amount above the inheritance tax limit, not on the whole estate. For example, if the limit which Didwot quotes is correct ( I haven't checked myself, but I know it's somewhere around there) if the total estate was �300,000 you would pay 40 per cent tax on �25,000.