Inheritance Tax and Its Importance

by Vidit Agarwal Marketing Director

Inheritance tax and its recent reforms are of utmost importance. With a rise in the prices of houses in the UK, it is expected that the prices will continue to rise.

The assumption that Inheritance Tax is only for the rich is quite wrong. Property here does not simply mean land or house; it also includes the articles in your possession including jewelry, investments and other things.

Who Pays the Inheritance Tax?

The biggest question is about who pays the tax? Well, the person passing the possessions does! However, if the person can no longer do so, or dies, the tax comes out of the estate minus the debts against the property.

Furthermore, the legal heirs of the person are also liable to pay the tax. But in the case of a gift, if the gift has been made by an individual within the ambit of seven years before their deaths, and is unable to pay so, the person who received the gift is liable to pay the tax on the gift.

Is there a Way to Avoid the Inheritance Bill?

Inheritance Bill can be avoided in some ways. Here are a few options:

Consult a specialist and think things through.
The individual can choose to distribute their possessions or choose to spend it as they see fit.
Opt for Equity Release. This scheme is quite complex and should not be opted for unless advised by a specialist.
Insurance against your property. This is the easiest way to safeguard your possessions from unwelcome bills!

In other words, the HMRC inheritance tax called death tax is triggered by death and is payable on the net value of estate such as money, possessions, property of an individual on his death. So, as you can see, the rules are complicated, that’s why you’re best of getting advice from inheritance tax accountants. They can help you with queries on inheritance tax.