In the midst of helping people set their affairs in order, sometimes little details can seemingly slip by as other priorities take precedence.
However, if a client will have to pay inheritance tax (IHT) following the death of a loved one, it is worth reminding them that they only have a set amount of time to make the payment.
The threshold at which someone will have to pay 40% IHT stands at £325,000. However, there are exceptions which could change this for some clients.
However, it’s not just the actual amount of IHT that may need to be paid. It’s also beneficial to remind clients that they have to pay what they owe by the end of the sixth month after a person dies.
Any IHT not paid after the 6 month deadline begins to accrue interes of its own.
From April 2020, HMRC has said the interest rate is set at 2.60 percent, with interest on repayments at 0.5 percent.
