Inheritance Tax in numbers - everything you need to know

There's an old saying that nothing is certain in life, except death and taxes.

Rather depressingly, Inheritance Tax (IHT) combines the two - and it could be a ticking timebomb as your assets grow.

However, by knowing the rules, there are ways you can save money.

Here is our Financial Services Director Allan Gardner's easy 'IHT by numbers' guide to the legislation:

£325,000

The first £325,000 value of your estate is called the 'Nil Rate Band' because, although it is taxable to IHT, it is taxed at 0%.

40%

Currently, IHT is payable on death at this rate on the value of your net assets over £325,000.

Seven

The number of years you must survive if you give away large amounts of money or valuable assets while you are alive, otherwise HMRC will tax you for IHT as if you still owned them when you die.

£3,000

Everyone has an 'Annual Exemption' for IHT of this amount every tax year.

£5,000

If your children get married, you can give them or their spouse a lump sum up to this value completely free of IHT.

£650,000

When a married couple or registered civil partnership estate exceeds this amount, IHT will usually only be paid on the excess, provided the necessary claims are made to HMRC within the appropriate time limits. Changes are proposed here - but the current rules are worth knowing.

£2,500

If your grandchildren get married, you can give them or their spouse a lump sum to this value completely free of IHT.

Need advice?

Aberdein Considine have a team Independent Financial Advisers across Scotland who can assist you with IHT planning. To book an appointment, call 0333 0066 333 or click here.