Inheritance Tax Guidance

What is Inheritance Tax in the UK?

Inheritance Tax (IHT) is a tax on the estate (the property, money, and possessions) of someone who has passed away. In the UK, the standard inheritance tax rate is 40%, but it is only charged on the portion of the estate that exceeds the tax-free threshold, also called the nil-rate band.

Key Points about Inheritance Tax:

• Nil-Rate Band: Currently £325,000. No IHT is paid if the estate value is below this threshold.

• Main Residence Allowance: An additional allowance may apply if you pass on your main home to direct descendants, increasing the threshold.

• Spouses & Civil Partners: Anything left to a spouse or civil partner is usually exempt from IHT.

• Exemptions & Reliefs: Certain gifts, charities, and trusts may reduce the taxable estate.

• Rates: The standard rate is 40%, but can be reduced to 36% if at least 10% of the estate is left to charity.

Why Planning Matters

Without proper planning, your estate may face a higher tax burden than necessary. By understanding the rules and making informed choices in advance, you can:

• Reduce the taxable value of your estate.

• Ensure that more of your wealth is passed on to your loved ones.

• Use available exemptions and allowances effectively.

At Astralys Capital, we understand that planning for the future is one of the most important steps you can take to secure your family’s financial wellbeing. Inheritance tax (IHT) is a significant consideration in the UK, and careful planning can help reduce unnecessary burdens on your loved ones.

Our team provides general guidance and information to help you:

• Understand how inheritance tax works in the UK.

• Learn about thresholds, exemptions, and allowances.

• Explore strategies that may legally minimise inheritance tax.

• Get clarity on estate planning options.

⚠️ Important Notice: Astralys Capital provides general tax guidance and educational resources. We do not provide personalised financial or legal advice. For regulated financial advice, we recommend consulting a qualified and FCA-authorised adviser.

Take the first step towards protecting your estate and making informed decisions for your family’s future.

👉 Contact us today to learn more about our inheritance tax planning guidance services. +44 7459063893