When is money owed for inheritance tax payable?
It needs to be paid six months after the end of the month when the person has died. The authority to release the money held in the estate is known as probate in England and Wales and confirmation in Scotland. How can I avoid paying inheritance tax through gifts? The crucial issue with making gifts to below the inheritance threshold is that they are made seven years before you die – it is, in a sense, a clock ticking when you can beat the tax office. What are the rules concerning gifts? Although gifts made in the seven years before your death can be subject to inheritance tax, a number are exempt from tax. A list of these can be found in An Introduction to Inheritance Tax, a leaflet available from the Inland Revenue. These gifts include: sums of money of up to £5,000 given as wedding gifts to children; maintenance payments to ex-partners and children; and other gifts of up to £3,000 made during a tax year. Everyone has this £3,000 limit and, if it’s not used up in one year, the amount c
