Important Things to Know About UK Inheritance Tax
When a passed UK relative or close friend leaves behind an inheritance, then it will most likely be subject to an Inheritance Tax. There are certain circumstances where only parts of inheritance leavings will be taxed, but in most cases, any inheritance and any lifetime gifts made in the last seven years of the deceased’s life, will be fall due of the UK Inheritance Tax.
It is not however the beneficiary that pays but will be taken from the inheritance before being handed down. However, the beneficiary must be aware they could be liable for other taxes, such as income tax or capital gains tax, if they make money from earning income or selling the assets they inherited. As with all taxes, it is all monitored and will be payable to HM Revenue and Customs.
If you are expecting an inheritance, it is always good to be aware of the types of taxes that the inheritance could be subject to.