Who is affected by Inheritance Tax?
It is a commonly-held belief that only extremely wealthy people are affected by Inheritance Tax, but this is not the case.
As it currently stands, Inheritance Tax is not charged on the first £325,000 of a person’s estate. This is the total value of the assets they have at the time of death.
In 2020, the Inheritance Tax threshold will be increased to £1 million for married couples and civil partnerships, but if you are single, then the allowance is halved to £500,000. While this is still a large amount of money, it shows that the tax does not just apply to those with multi-million pound net worths.
*Figures correct as of January 2018