The Inheritance Tax threshold is currently £325,000 for 2024-25
Inheritance Tax, sometimes referred to as the 'death tax', is back in the headlines this week amid concerns that the new Labour government might consider it as a means to bolster the UK's struggling finances.
Regardless of whether this occurs, thousands of individuals find themselves liable for Inheritance Tax each year. While it's crucial that everyone pays their fair share, it's also wise to avoid paying more tax than necessary due to poor planning or ill-advised financial decisions, reports the Express.The Inheritance Tax threshold for 2024-25 stands at £325,000 and has remained at this level for several years.
Similarly, leaving money to charity is exempt from Inheritance Tax. If you include a charity in your will, your estate won't pay any tax on the amount given to the charity. So, for instance, if you're going to leave assets worth £350,000 behind, you could donate £25,000 to charity and leave a £0 tax bill behind because only money over the £325,000 threshold is taxable.
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