Who pays Inheritance Tax?
Estates and lifetime gifts Not everyone pays Inheritance Tax on death. It only applies if the taxable value of your estate (including your share of any jointly owned assets and assets held in some types of trusts) when you die is above 312,000 (2008-2009 tax year). It is only payable on the excess above this nil rate band. There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due, for example: • if your estate passes to your husband, wife or civil partner and you are both domiciled in the UK there is no Inheritance Tax to pay even if it’s above the 312,000 nil rate band • most gifts made more than seven years before your death are exempt (but see the next section on trusts and companies) • certain other gifts, such as wedding gifts and gifts in anticipation of a civil partnership up to 5,000 (depending on the relationship between the giver and the recipient), gifts to charity, and 3,000 given aw
