As property values climb, you may be wondering about your IHT exposure. Basic principles recap:

• The estate pays any tax on value less all debts at the date of death.
• Assets: Property, cars, cash, investments, jewellery, art etc. 
• Liabilities: Mortgages, credit cards, family loans, including funeral costs.
• If legally Married/Civil partnership and everything goes to your spouse - there is no tax payable on the first death.
• The survivor inherits their spouse's tax-free allowance and everything is combined for the second death.
• The tax-free allowance - Nil Rate Band (NRB) = £325,000 per person (per couple £650,000).
• The is an extra allowance if all or part of your estate is left to your children or grandchildren - Residence NRB (RNRB) = £175,000 per person.
• This can take a couple's allowance up to £1m.
• Anything not left to direct lineage downward, is excluded from the RNRB.
• There are some extra exemptions for
• Agricultural Property Relief (APR)
• 'Business property' - Business Property Relief (BPR) either at 100% or 50% exempt.
• Typically, business assets owned by sole traders and partnerships.
• Shares in 'quoted company' e.g. small family companies.

If you have any concerns about your Inheritance Tax, please contact me to discuss it.