Who Pays The Inheritance Tax in the United Kingdom: Who Pays?
Inheritance Tax in the United Kingdom is a levy levied on the assets of someone who has died in the UK. The tax is paid by the deceased’s estate, indicating that their assets are used to pay the tax. In certain situations, the individual who inherits the deceased’s estate may also be liable to pay taxes.
Inheritance Tax payable amounts vary depending on the value of the house and the deceased’s residence. In England and Wales, Inheritance Tax is payable on any estate worth more than £325,000 for individuals and £650,000 for married couples. No Inheritance Tax is payable if the estate’s value falls below these thresholds.
The executor of the deceased’s estate pays Inheritance Tax. This is usually a family member or a friend who has been asked by the deceased to manage the estate. The executor will be in charge of determining the value of the estate and paying the Inheritance Tax.
In some situations, the person who inherits the assets may also be responsible for Inheritance Tax. If the assets are worth more than the Inheritance Tax threshold, the beneficiaries will be responsible for Inheritance Tax on anything that they inherit above this threshold.
In some cases, inheritance tax can be reduced. For example, gifts given to charity or certain family members are exempt from Inheritance Tax, and the deceased may have taken advantage of certain exemptions or waivers available to minimize their tax liability.
In summary, Inheritance Tax in the United Kingdom is paid by the deceased’s estate, as well as in some cases by the estate’s beneficiaries. The amount payable is dependant on the value of the estate and the deceased’s home, with higher tax rates on estates worth more than the Inheritance Tax threshold. The executor of the estate is in charge of estimating the Inheritance Tax due and paying it.Continue Reading