25/02/2026
When a person passes away, their estate may be subject to IHT dependent on the value of assets they leave behind. More and more estates are now falling fowl of Inheritance tax (IHT) due to rise in property prices and other financial factors, so, when does your estate have to pay IHT?
Current IHT rate is 40% (currently frozen until April 2028)
⚜️ Single person’s estate relief: £325,000 (inc. property and other assets) – if you have children inheriting, you may be entitled to pass on £500,000.
⚜️ Married couple (on 2nd death) relief: £650,000 (inc. property and other assets) – if you have children inheriting, you may be entitled to pass on £1 million.
The 40% tax is only paid on whatever is OVER this single or married couple’s allowance.
However, if there have been lifetime gifts made in the 7 years prior to death, this may reduce the available allowance, you must take advice on this.
It is always a good idea at the time of reviewing your Will, or putting your first Will in place, to go over your current IHT position so you can plan ahead if needed.
Note: if you have business or agricultural assets, your estate may also be entitled to additional reliefs, our advisors can talk you through these where necessary.
Please contact the professional IHT advisors at Florins to help guide you.
📞 01507 304222
📧 [email protected]
📍 132 Eastgate, Louth
