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Counting
the cost
How
much tax could be due?
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No inheritance tax (IHT) is payable on the first £263,000 (the 'nil-rate' band 2004/05) of your estate that you leave on your death. This is levied at a zero rate, but assets over this figure are taxed at 40 per cent unless you pass them to your UK-domiciled surviving spouse when they will be exempt from tax. Assets passed to a spouse may still be liable to IHT on the subsequent death of that spouse.
Payments to the Inland Revenue are likely to continue increasing in future years, due partly to rising property prices and a lack of understanding relating to the current tax rules. Take a few minutes out to calculate how much tax your estate could trigger.
If you have any concerns you should talk to us first for a complete independent assessment of your situation before acting.
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Are
you in good shape?
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Estate
1
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Estate
2
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Estate
3
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Estate
4
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Estate
value
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£500,000
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£750,000
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£1,000,000
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£2,000,000
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First £263,000
Nil-rate
band
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£263,000
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£263,000
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£263,000
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£263,000
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Amount
of estate liable to IHT
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£237,000
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£487,000
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£737,000
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£1,737,000
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Tax
bill (IHT) payable at a flat rate of 40%
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£94,800
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£194,800
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£294,
800
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£694,800
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Levels,
and bases of, and
reliefs from taxation
are subject to change.
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