IHTM22071 - Tax burden on death: summary

The Inheritance Tax (IHT) paid on the earlier chargeable transfer (IHTM04027) cannot have increased your deceased바카라 사이트™s estate. So, you must ensure that your calculation of the assets your deceased received does not include the tax paid on them.

Example

Jonathan died in July 2011 having received the entire free estate of Simon who died in January 2008. Simon바카라 사이트™s death estate, wholly chargeable, consisted of free estate of £155,000 and settled property of £58,000, plus lifetime transfers of £350,000, a total of £563,000.

The IHT on the free estate was £62,000. It has all been paid.

The increase in Jonathan바카라 사이트™s estate was £155,000 - £62,000 (tax on that value) = £93,000 (net value after tax).

Where the earlier transfer was on death, in general

  • pecuniary legacies and specific gifts are normally paid free of tax (IHTM22072) unless it specifically says otherwise in the Will or variation,
  • gifts of residue (IHTM22074), foreign property, settled property and joint property bear their own tax (IHTM22073).