{"id":1529,"date":"2016-03-03T09:31:01","date_gmt":"2016-03-03T09:31:01","guid":{"rendered":"http:\/\/www.bwmltd.org\/wordpress\/?p=1529"},"modified":"2016-03-03T09:31:01","modified_gmt":"2016-03-03T09:31:01","slug":"paying-inheritance-tax-3","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/paying-inheritance-tax-3\/","title":{"rendered":"Paying Inheritance Tax"},"content":{"rendered":"

Estimating how much liability you could leave behind for your loved ones<\/strong><\/p>\n

Usually the \u2018executor\u2019 of the will or the \u2018administrator\u2019 of the estate pays Inheritance Tax using funds from the estate.<\/p>\n

An executor is a person named in the will to deal with the estate \u2013 there can be more than one. An administrator is the person who deals with the estate if there\u2019s no will. Trustees are responsible for paying\u00a0Inheritance Tax on trusts.<\/p>\n

Work out if Inheritance Tax is due on an estate<\/strong>
\nTo estimate how much Inheritance Tax you could have to pay, add up the value of all your wealth, subtract your liabilities and the \u00a3325,000 nil rate band allowance, and then multiply the remainder by 40%.<\/p>\n

If you are married or in a registered civil partnership, add up your combined estates and reduce these by two nil rate band allowances of \u00a3325,000 each (\u00a3650,000) before applying the 40% rate to estimate your potential liability to Inheritance Tax.<\/p>\n

Married couples and registered civil partners are allowed to pass their possessions and assets to each other Inheritance Tax\u2013free, and since October 2007 the surviving partner is now allowed to use both Inheritance Tax\u2013free allowances (providing one wasn\u2019t used at the first death).<\/p>\n

Gifts made within the last seven years are not included in the calculations but may be liable to Inheritance Tax on a sliding scale.<\/p>\n

The calculation for valuation of your estate is for your
\ngeneral information and use only and is not intended
\nto address your particular requirements.<\/p>\n

It should not be relied upon in its entirety and shall
\nnot be deemed to be, or constitute, advice. No individual
\nor company should act upon such information without receiving appropriate professional advice after a
\nthorough examination of their particular situation.<\/p>\n

If Inheritance Tax is due on the estate, you would need to complete HM Revenue & Customs (HMRC) form IHT400. You may also need to send other forms at the same time.<\/p>\n

If no Inheritance Tax is due, you\u2019ll need to complete form IHT205\u00a0to tell HMRC that no IHT is due on the estate.
\nYou or your solicitor will need to send the forms with your\u00a0application for probate\u00a0(\u2018grant of representation\u2019). This is called\u00a0\u2018confirmation\u2019\u00a0in Scotland.<\/p>\n

The grant of representation (confirmation) gives you the right to deal with the estate as the executor or administrator.<\/p>\n

Deadline for paying Inheritance Tax<\/strong>
\nThe executor of a will or administrator of an estate usually has to\u00a0pay Inheritance Tax\u00a0by the end of the sixth month after the person died. After this, the estate has to pay\u00a0interest.<\/p>\n

You can\u00a0make early payments\u00a0before you know what the estate owes. Interest isn\u2019t due on this amount.<\/p>\n

You can\u00a0pay Inheritance Tax in instalments\u00a0over 10 years on things that may take time to sell, for example, property and some types of shares.<\/p>\n

There are different deadlines for\u00a0paying Inheritance Tax on a trust.<\/p>\n","protected":false},"excerpt":{"rendered":"

Estimating how much liability you could leave behind for your loved ones Usually the \u2018executor\u2019 of the will or the \u2018administrator\u2019 of the estate pays Inheritance Tax using funds from the estate.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1529"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1529"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1529\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}