IHT may be payable when an individual’s estate is worth more than the IHT nil band when they die.
The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or fully used, on the previous death.
There are reliefs for some assets which reduce their value for IHT purposes.
IHT may also be payable on gifts made in an individual’s lifetime but within seven years of death.
Some lifetime gifts are exempt.
Transfers of assets into trust made in an individual’s lifetime may be subject to an immediate charge but at lifetime rates.
There also charges on some trusts.