New Inheritance Tax Calculator Reveals Potential IHT Bills – A Must-Try Tool!


Inheritance tax receipts are poised to hit record levels this year, and the freezing of the inheritance tax threshold until 2028 has many individuals wondering about the potential tax liabilities on their estates.

The Solution: An Online Inheritance Tax Calculator

Worried about potential inheritance tax bills? Here’s a solution that might surprise you – an online “Inheritance tax calculator” has been introduced, offering a quick estimate of your potential inheritance tax liability.

Important Notes Before You Begin:

Before using this tool, keep in mind that it serves as a quick guide and does not account for various reliefs and exemptions that might apply to your situation. It also does not consider gifts made in the past seven years or entitlements within existing trusts, which could impact your IHT payable.

Moreover, for married couples or those in civil partnerships, IHT liability might not come into play until the second death, depending on the provisions of wills.

How It Works:

  1. Asset Valuation: Start by entering your best estimates for the value of your assets, including your primary residence, other properties, investments, and regular savings.
  2. Financial Commitments: Input estimates of financial commitments such as mortgages, loans secured against properties, overdrafts, and credit card debts.
  3. Calculate: After filling in the required fields, simply press “calculate” to obtain a detailed breakdown of your net estate value and the potential IHT liability, both for individuals and couples.
  4. Understanding the Results: The tool provides IHT liability estimates at the standard rate of 40% for individuals and couples, based on certain assumptions.

Important Assumptions:

  • The main residence is left to direct descendants, applying the Residence Nil Rate Band (currently £175,000).
  • For couples, it assumes that all assets are bequeathed to the surviving spouse on the first death, subsequently forming part of the survivor’s estate on the second death.
  • It doesn’t consider reduced rates of inheritance tax, such as when some or all of the estate is left to charitable organizations.

Conclusion: A Useful Tool with Caveats

While this “Inheritance tax calculator” can provide valuable insights into potential inheritance tax liabilities, it’s essential to remember that it’s a tool for estimation. Tax rates, thresholds, and reliefs are subject to change over time, so always consult with a financial advisor for the most accurate and up-to-date information.

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