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Inheritance Tax in the UK <div><font size="2" face="Arial">Inheritance tax in the UK is payable when a large <br /> valued estate is handed over to a person, persons or business entity. <br /> Inheritance tax is usually due, or will potentially be due, when a person dies. <br /> There are also other occasions when it could be due, such as – when assets are <br /> transferred to a company or discretionary trust. Even if you are not due <br /> Inheritance tax, because the amount is too small, you will still have to fill <br /> out a grant of representation. There are certain instances where this is not <br /> required, but for the most part you will have to.</font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">Inheritance tax acts as a major burden on larger <br /> estates than it does on smaller ones. With larger rises in property rises, it <br /> can impact sums of money by a very significant percentage. The tax becomes <br /> larger as a percentage as the amount increases. For example, on the top tier of <br /> a 300,000 pounds inheritance you could expect to pay 40%. </font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial"><strong><a href="http://www.inheritance-tax-uk.com/">Inheritance tax</a></strong> also <br /> applies for marriages and is due when the amount passes a certain threshold in <br /> terms of gifts the married couple receives from family and friends. As a parent <br /> you are allowed to give a gift for up to 5000 pounds and anything over will be <br /> taxed accordingly. Like wise, you will be due tax on any money you receive from <br /> grandparents over 2,500 pounds and 1,000 from friends who are not related to <br /> you. </font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">When Do You Pay Inheritance Tax and what is the <br /> Threshold?</font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">If the value of a gift is below the threshold then <br /> you do not have to pay inheritance tax, however that varies and is not fixed. <br /> Certain types of estate do not require tax to be deducted so that must become a <br /> factor in your calculation. The items that do not require tax deduction include <br /> shares in companies which are not quoted on the stock-market (private limited <br /> companies, sole proprietorships and partnerships) and the amount which it costs <br /> for the funeral in the case that you have inherited estate from someone who has <br /> died. </font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">What are the Late Payment Charges?</font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">Late payment is charged on any payment which is not <br /> paid by the due date. No matter what reason is to blame, such as not being able <br /> to get the money, shares or property on time. In the instance where you do have <br /> to make late payments they are usually fairly reasonable, around 5%. This is <br /> around the same value which you would accrue in a bank account; therefore the <br /> government is getting the money they would otherwise get from a bank if it was <br /> placed there. If you are inheriting the money from a bank account and get paid <br /> late, you will likely have accrued a similar amount of money there.&nbsp;&nbsp;&nbsp; <br /> </font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">Who Has to Pay Inheritance Tax?</font></div><br /> <div>&nbsp;</div><br /> <div><font size="2" face="Arial">The person or persons who are getting the money <br /> have to pay the inheritance tax; therefore if you are listed in the will then <br /> you are responsible. You are due to pay <strong><a href="http://www.inheritance-tax-uk.com/">inheritance tax</a></strong> based on <br /> the percentage of the taxable estate which you are set to gain.</font></div><br /> <div><font size="2" face="Arial">David Sprake, a proficient writer, writes for a few Inheritance tax UK sites. The author writes articles about <strong><a href="http://www.inheritance-tax-uk.com/">Inheritance tax UK</a></strong>. Supplementary editorials that were written by David Sprake about <strong><a href="http://www.inheritance-tax-uk.com/">UK inheritance tax</a></strong> are accessible on the internet.<br /></font></div>