How much tax do I have to pay on a succession?
Last update: 10/7/2012
Which acquisitions fall under UK inheritance tax?
The inheritance is taxable under the UK Inheritance Tax Act 1984
- for the whole estate, if the deceased had his/her place of residence in the United Kingdom at the time of his/her death or up to three years before the death.
- If the deceased had his/her place of residence outside the United Kingdom, the deceased’s property situated outside the United Kingdom is excluded from British inheritance tax – irrespectively of where the transferee is living.
Which threshold is tax free?
Under the Inheritance Tax Act 1984, for the whole estate of the deceased, £ 325 00 are tax exempt (as of 6 April 2009) – irrespectively of whether the estate falls to one or more persons and irrespectively of the relation between the deceased and the beneficiaries.
Transfers to the deceased’s (or transferor’s) spouse or civil partner are completely tax exempt. However if, immediately before the transfer, the transferor but not the transferor’s spouse or civil partner is domiciled in the United Kingdom, only £ 55 000 are tax exempt.
How much is the tax rate?
The excess, surmounting the above mentioned thresholds, is taxed at a rate of 40 % (as of 6 April 2009).
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Successions in the United Kingdom
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