Basic Inheritance Tax

Purpose of calculator.

This calculator is designed to help people find out whether or not they may have an IHT problem.

• If you are single, it's what will be the case when you die.
• If you are a couple, then it's what will be the case when the SECOND person dies, assuming that everything passed to them on the first death, and that no IHT planning was done.

• Nil Rate Band of 312K.
• Tax rate of 40%.
• Valid for year 2008-8

Calculator Notes

(1) - Main residence and additional homes.

(2) - Stocks, Shares, Deposits, National Savings etc. Includes investment property, whether or not rented out.

(3) - Ignore Life Insurance linked to a mortgage. Other life insurance may actually be outside of your estate and thus not count for Inheritance Tax purposes. If it isn't, we can probably adjust it so that it doesn't count for IHT. We need to see the documents to assess this.

(4) - If you have lent significant sums of money then this debt owed to you is an asset of your estate, and could create a tax liability. If you do not really expect repayment, (especially if it is a family matter), then consider turning the debt into a gift so that the money is removed from your estate.

(5) - This calculator IGNORES Business Property Relief. It takes the view that you will have sold the business, (or passed it to children),and retired long before any IHT liability arises. Therefore in this section put in the value that you expect to retain to ease your retirement. EG you have a business worth £500,000 but expect to pass it to your children as a £200,000 sale and £300,000 gift. Put £200,000 in the box.

This calculator, and the figures shown by it, are for illustrative purposes only and should not be relied on. For more detailed information based on your own circumstances, please speak to your financial adviser.