Inheritance Tax Planning

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Spouse threshold transfer

In October 2007 the Treasury announced a change in the rules governing the nil rate band, or 0% rated threshold, which every individual qualifies for. The change centred on the ability to transfer the threshold from one spouse to another after death.

The reason for this change is spouses can and do transfer their estates to each other on death completely free of any inheritance tax. This is great but as a result it does essentially waste the nil rate band which they qualify for.

So the government announced that they would allow any unused nil rate band to be transferred to the surviving spouse to be used on their death giving potentially a total nil rate band of £650,000 (based on 2009-2010 rules)

The only thing to pay particular attention to is the fact of the "unused amount". So if say for example some of the estate was passed to someone other than the spouse at the time of the first death a percentage of the nil rate band could have been used up then so the surviving spouse would only qualify for the percentage remaining of the nil rate band on their death.

There is a claim form to submit to the inland revenue stating what is available and what is being claimed for and this will tell you what you will qualify for at that time.

IHT Calculator

Use our FREE tool to estimate the inheritance tax liability be due on your estate.

Glossary of Terms

Baffled by all the jargon? Then why not use our glossary to make things easier!


This section covers the various gifts available to you to utilise the tax free benefits open to you.


Here you will find all the exemptions which may enable you to pass on parts of your estate free of any inheritance tax.

The 7 Year Rule

Gift any part of your estate outside those allowable will create a potentially exempt transfer find out how you stand under the tax laws.

IHT relief's

There are certain relief's that like the exemptions allow for transfer to people without tax this section covers those.