Inheritance Tax is a tax which can arise where a beneficiary receives an inheritance as a result of someone dying. The beneficiary is responsible for paying the tax. An inheritance can be taken under a will or intestacy. Inheritance tax may arise when a beneficiary receives an inheritance which exceeds their threshold. A threshold is the amount a beneficiary is allowed receive without having to pay tax. Your threshold is determined by your relationship to the person from whom you are receiving your inheritance.The inheritance a person receives is taxed if its value exceeds the threshold. Different tax thresholds apply depending on the relationship between the deceased person and the beneficiary. There are also a no of reliefs from inheritance tax available. Inheritance tax is also known as Capital Acquisition Tax (CAT).
It is necessary to consider the following:
- How do I know if I am liable to inheritance tax-Inheritance tax thresholds
- What reliefs are available
- When is Inheritance Tax payable
Each of these matters is dealt with in our website. The information set out above is to act as a guide and is no substitute for specific advice that you would receive from us about Inheritance Tax. The law and tax law is always changing and affects each person differently.