What is the rate of inheritance tax?
Inheritance tax is payable if the value of your estate exceeds £325,000 (in the tax year 2009/10 and 2010/2011). Tax on any part of your estate which is above this threshold is charged at 40%. What is included in an estate? Your estate includes everything you own, less any outstanding bills you have to pay, at the time of your death. Even if you give away some of your assets during your lifetime, such as property or money, they may still be included in the value of your estate, if gifted within 7 years of your death.
