Inheritance Tax is a tax that is paid on the value of an estate over a certain threshold. The government sets this level, and it depends on who’s in power at the time and their attitude to inherited wealth that determines what the threshold will be.
The basic Inheritance Tax threshold is currently £325,000 per person as of April 2016. The Inheritance Tax rate is 40% of the value of your estate above this threshold however there are certain factors which can affect the amount of Inheritance Tax to be paid.