The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Inheritance tax is a government tax levied on the ‘estate’ (property, money, possessions) of a deceased person. 

Inheritance tax definition

Inheritance tax is a government tax levied on the ‘estate’ (property, money, possessions) of a deceased person. There is no tax charged on the first £325,000 inherited, but any value above this threshold is charged at 40%. Inheritance tax rates are expected to be frozen until 2018/19.

Usually the ‘executor’ of the will or the ‘administrator’ of the estate pays the tax using funds from the estate. Should the inheritance be held in a trust, then the trustee will pay.

 

IG Smart Portfolios

Invest in an expertly managed portfolio, at a fraction of the cost of traditional wealth managers and independent financial advisors (IFAs), with an IG Smart Portfolio.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms