Frequently Asked Questions (FAQs) about UK Inheritance tax

How much is inheritance tax in the UK? Inheritance tax is charged at 40% on the value of an estate above available allowances.

Are gifts always tax-free after seven years? Generally yes, but detailed rules apply and records must be kept.

Do unmarried partners benefit from IHT exemptions? No. Only spouses and civil partners qualify for spousal exemptions.

Can trusts still reduce inheritance tax? Yes — when structured correctly and used strategically.

Is inheritance tax payable before probate? Yes, usually within six months of death.

Can life insurance help with IHT? Yes. Policies written into trust can fund tax liabilities without increasing the taxable estate.

What happens if I keep using a gifted asset? This may trigger “gift with reservation” rules, cancelling tax benefits.

Is inheritance tax planning only for the wealthy?

No. Many estates now exceed thresholds due to property inflation.

About the Author

Sheikh Najam is a Notary Public of England and Wales, a qualified lawyer, and the founder of Staple Inn Notaries, a London-based practice advising individuals, families, and businesses on UK and cross-border legal matters.

He advises on notarial services, Wills and estate planning, trusts, probate, inheritance tax planning, business and corporate law, and dispute resolution, with particular expertise in international and cross-border estates, trusts, and documentation.

Sheikh Najam is STEP-qualified and authorised to practise law anywhere in England and Wales. He regularly acts for international clients, overseas families, and business owners requiring UK legal advice in connection with foreign authorities, overseas assets, and multi-jurisdictional matters.

📍 Based in central London📞 020 3488 4195

email sheikh@internationalnotarylawyer.com