Philip Cottrell-Spain - Death Duties

philipcottrell

Good afternoon. Please can someone confirm the current percentage that you have to pay on death duties when a loved one passes on. Is it taken on the value of the full estate or subject to earnings/pensions etc..

Mojisola

If the death was in the UK, you're looking at inheritance tax.

Details here -
http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

BobQ

Mojisola wrote: »

If the death was in the UK, you're looking at inheritance tax.

Details here -
http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

Strictly, it depends on your domicile status. Note domiciled has a specific meaning.

From HMRC website....

Which assets are taxable in the UK?

Generally, if you are domiciled, or deemed to be domiciled, in the UK, inheritance tax applies to your assets wherever they are sited.

If you are domiciled abroad, inheritance tax applies only to your UK assets. However, if you are domiciled abroad there is no charge on excluded assets and we may remove certain other types of UK assets from the tax charge. For more information on excluded property see 'What is excluded property?'

http://www.hmrc.gov.uk/cto/customerguide/page20.htm

There is a nil rate band of £325K and the rate above this is 40% (or 36% if you give sufficient to charity).