Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Inheritance tax definition

What does Inheritance tax mean? Inheritance tax describes the taxation of wealth transfers on death and, in defined cases, on lifetime gifts and trust transfers. In the UK (England & Wales, Scotland and Northern Ireland), Inheritance Tax is a statutory regime under the Inheritance Tax Act 1984, charged at rates up to 40% on transfers of value. It is usually payable from the deceased’s estate by personal representatives. Lifetime charges arise on chargeable lifetime transfers (typically gifts into most trusts) and where a donor dies within seven years of a potentially exempt transfer. Key features include the nil-rate band and, where conditions are met,...

Settling 1975 Act claims: IHT and CGT planning using deeds of variation, court and Tomlin orders, trusts and life interests; spouse and charity exemptions, RNRB, APR/BPR (England and Wales)

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Practice notes

The tax position of an estate is frequently central when resolving claims under the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975)...

The taxation of estates

Inheritance tax (IHT) applies to a notional transfer of assets on death. Up to the nil rate band (NRB) of £325,000 the rate is 0%; thereafter, assets are taxed at 40% (subject to available exemptions and reliefs). Any unused NRB can be transferred to a spouse, and a residence nil rate band (RNRB) has also been introduced. Transfers to (domiciled) spouses and to charities are exempt from IHT, and certain categories of property—agricultural property and business property—may fall outside the charge. Settlements are governed by a separate taxation regime. For more information, see: Estates—inheritance tax—overview.

Capital gains tax (CGT) is charged on the uplift in value of assets from acquisition. On death, accrued gains are effectively ‘wiped off’. Gains arising after the date of death are taxable within the estate at the trustee rate. An executor effectively benefits from only three tax years of annual exemptions; after that period, all gains are chargeable. However, if an asset...

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Richard Dew

Ten Old Square

Richard Dew's practice is focussed on Wills, Estates and Trusts and related professional negligence. His practice is predominantly litigation, and he is frequently involved in large and complex claims. He also advises and represents in Court of Protection matters and provides expert advice in respect of tax and tax planning (principally capital taxation). Chambers and Partners describe him as a “’superb junior,’ who combines strong academic credentials … with a flair for litigation and ADR”.He is a member of STEP and ACTAPS. He has experience at all levels of litigation (with two recent cases in the Court of Appeal) and considerable experience in the conduct of mediation and alternative dispute resolution. Richard is an editor of Tolley's Inheritance Tax Planning and the Trusts and Estate Practitioner's Guide to Mental Capacity. He is a contributor to the recent book on...

Web page updated on 21/05/2026

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