Inheritance Tax
What is Inheritance Tax, and Does the Estate Need to Pay It?
Inheritance Tax (IHT) is a tax on the value of a deceased person’s estate above certain thresholds. It is charged at 40% on the portion of the estate that exceeds the available tax-free allowance. A number of exemptions and reliefs can significantly reduce or eliminate the liability. Most estates do not pay Inheritance Tax.
The nil rate band
Every individual has a standard nil rate band of £325,000. Assets up to this value can pass free of IHT. The NRB has been at this level since 2009 and is frozen until at least April 2030.
The Residence Nil Rate Band
Where a residential property passes to a direct descendant, an additional allowance called the Residence Nil Rate Band (RNRB) is available, currently up to £175,000 per person. Combined with the standard NRB, a qualifying individual may be able to pass up to £500,000 free of IHT.
Transfers between spouses
Assets passing between married couples or civil partners are generally exempt from IHT at the point of the first death. Any unused nil rate band and RNRB can also be transferred to the surviving spouse’s estate.
When does IHT have to be reported?
Even if no IHT is due, the estate’s position must be reported to HMRC as part of most probate applications. For deaths from 1 January 2022, this is done through the IHT400. YouCanDoProbate performs every IHT calculation automatically and completes the IHT400 and all required supplementary schedules.
The easy and affordable way to apply for probate
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Mine wasn’t a straight forward case. Following a very friendly informative chat with Tom, I felt confident to try and complete the process for myself. I had to ring and ask for a call back a couple of times, which they did very promptly. Luckily for me, I spoke to Tom on both occasions. He talked me through my issues, and helped me to complete the form the same day. I will be posting my documents tomorrow, and will hopefully do an update once I have received my grant of probate. I couldn’t find fault with any of the service, and would thoroughly recommend it. Thank you Tom.
We decided to use you can do private after realising how much a solicitor would charge us The forms were easy step by step all information and questions we needed to ask were easily found. The online and telephone support was excellent we are still going through it as takes up to 16 weeks for it to be completed We were very impressed and so would our dad be if he thought it was saving us money
Easy and very cheap DIY probate with full money back guarantee
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I am a qualified accountant (although not a tax specialist, so no IHT experience), but even had that not been the case I’m sure I would have found the software easy and intuitive to follow. Helpline queries were answered very quickly and helpfully (within 24 hours). Absolutely didn’t need a solicitor. All 13 IHT forms were generated for me which I’d never have been able to do without help. I decided to apply for the probate certificate online to save time and just took the printout from the software and replicated it on the probate portal – again very easy.
YouCanDoProbate were very helpful when things needed explaining a little more, The questionnaire needed a bit of research to get the information needed but overall things went smoothly.
Having used a well known company previously to carry out a probate application and being very dissatisfied as it took 12 months (this was not a complex case) I was determined to apply myself this time around. However the government online system is not very user friendly and I found myself rethinking my approach. You can do probate were the perfect middle ground. The cost was considerably less and the availability of experts to consult with throughout the process was very reassuring. Before you go straight to a solicitor or an independent probate firm take a look at we can do probate. The biggest difference is that you are in control of the time frame . I will use them again if the event ever arises.
Fantastic programme and support. I spoke to Adam a few times and he was extremely helpful. Applying for probate can be challenging despite having reasonable knowledge of the process. I did the probate for my late mother and once I had the codes from HMRC got the probate within 10 days. Best to do the probate process online rather than sending the paper forms. All you have to submit to the probate office is the original will. I would recommend this company highly as all the solicitors would do is to supply them with the relevant paperwork and charge a large sum for doing what I did in 2 hours.
Very helpful app that is easy and intuitive to use. The one question I needed to ask was answered promptly and helpfully.
Easy to do. Help always available. And it costs a lot less than solicitors. Excellent service.
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