A tax on transfers of value (www.practicallaw.com/resource.do?item=:44467952) introduced to replace capital transfer tax (www.practicallaw.com/4-508-9580). It is primarily a charge on death, on the value of an individual's estate (www.practicallaw.com/2-382-5620) as at the date of their death, over and above a certain allowance called the nil rate band (www.practicallaw.com/1-382-5649). The rate of tax on death is 40%.
It may also be payable in lifetime, when assets are given to a relevant property trust (www.practicallaw.com/resource.do?item=:42420978) or to a company. The rate of tax in lifetime is 20%.
In addition to the nil rate band, there are a number of exemptions, allowances and reliefs that may reduce the amount of IHT payable further. For further information see Practice note, Inheritance tax: overview (www.practicallaw.com/3-383-5652).