In the UK the main tax when you die is inheritance tax which you will often hear referred to as “IHT”. Whether or not IHT will apply to you depends on your domicile. Generally, if you’re from the UK, you will have a UK domicile which means you will be subject to IHT on all your assets whether or not they are located in the UK. If you have a non-UK domicile you will only be subject to IHT on your UK assets. So if IHT applies to you how much is going to be payable on your death? The starting point is that IHT is charged at 40% on the value of your assets at the time of your death. That is only part of the story because there are various exemptions and reliefs that can apply depending first on the type of assets you own, and secondly onto whom those assets pass when you die. Assets that pass to charity or to a surviving spouse (husband, wife or civil partner) generally aren’t subject to IHT. Equally there are valuable reliefs for certain types of business and agricultural property.
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