Inheritance tax (IHT) is a 40% tax payable on whatever you leave behind for your heirs when you die, on estates above a certain value. Your estate – with a few exceptions – consists of the assets that make up your net wealth at the point of death. So that’s everything from your house, to cash in the bank, to your investment portfolio. The bill usually has to be paid by the executor of your estate within six months of your death, or the tax office will start charging interest.
When you summarise it in [...]