Inheritance tax, or IHT as it is commonly known, is payable on everything you have of value when you die, including: Your home, Jewellery, Savings and investments, Works of art, Cars and any other properties or land – even if they are overseas. Where your estate is left to someone other than a spouse or civil partner (i.e. to a non-exempt beneficiary), IHT will be payable on the amount so left as exceeds the nil rate threshold. The current threshold is £ 325,000 per individual, so a married couple will have a total exemption limit of £ 650,000. IHT is charged @40% on the value of assets above this limit.

With careful advance planning one can significantly reduce or eliminate the tax liability on children.