Inheritance Tax Guide

March 18, 2026 · WOWERI

Inherited assets in the UK? Learn how to calculate and pay Inheritance Tax. Guidance from HMRC's Inheritance Tax Manual.

Introduction to Inheritance Tax

Inheritance Tax is a tax paid on the estate left by a deceased person. The Inheritance Tax rate in the UK is 40% of the estate's value above the tax threshold of £325,000.

Calculating Inheritance Tax

To calculate Inheritance Tax, you need to determine the estate's value, including all assets, such as property, securities, and cash. The tax threshold is deducted from the estate's value, and the remaining amount is taxed at 40%.

Paying Inheritance Tax

Inheritance Tax must be paid within six months of the person's death. If the tax is not paid on time, penalties and interest may be charged.

Conclusion

Inheritance Tax can be complex and requires careful calculation and payment. The HMRC's Inheritance Tax Manual provides detailed guidance on how to calculate and pay Inheritance Tax.

Source: gov.uk