When is Inheritance Tax payable?

The usual rule is that if the estate exceeds the Inheritance Tax (IHT) threshold of £325,000, IHT must be paid at the rate of 40% of the estate value exceeding the threshold unless the balance has been bequeathed to the surviving spouse. In the case of the latter no IHT is paid until the surviving spouse dies when the amount due in IHT will be 40% of the balance of the estate above £650,000. Please note that in addition to the usual rule, there are various exceptions. Please consult a solicitor for further advice. When due, the IHT must be paid within 6 months of the last day of the month in which the person died. If the IHT is a large sum, it is possible to pay it in instalments.

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