Inheritance Tax: What YOU should expect from the Budget - 'Review is well overdue'
Normally, you are not required to pay Inheritance Tax if the value of your estate is below the Nil Rate Band of £325,000 and you leave everything above the threshold to a spouse or civil partner, or if you leave everything above the threshold to an exempt beneficiary such as a charity.
If the value of an estate is above the Nil Rate Band then it will be classed as part of your estate and could be taxed.
The current Inheritance Tax rate is 40 percent. For instance, if an estate is worth £625,000, tax will be charged on the £300,000 above the Nil Rate Band which means tax would 40 percent of this figure – £120,000.
The Chancellor of the Exchequer Rishi Sunak will deliver his Spring Budget on Wednesday, March 3.
Mr Sunak is preparing to announce several new measures designed to boost the UK economy in the wake of the coronavirus crisis.
