March 7th, 2017 / Insight posted in Practical Guides

Inheritance tax Liabilities

Inheritance tax (IHT) is charged on an individual’s net estate, i.e. the total value of assets less liabilities owed by the estate. The liabilities are usually deducted from the assets that they relate to.

For example, a loan secured on a property is deducted from the value of that property and the net amount is used when calculating the total value of the estate for IHT purposes.