UK inheritance tax is charged on the full value of worldwide assets for UK domiciled individuals. However, double taxation relief may be available if foreign tax is paid on the same assets. The calculation can be complex and requires specialist advice for international estates.

The 7-year rule applies to potentially exempt transfers (PETs). If you make a gift and survive for 7 years, it becomes completely exempt from inheritance tax. If you die within 7 years, the gift may be subject to inheritance tax, with taper relief reducing the rate if you survive between 3-7 years.

Inheritance tax is typically paid within 6 months of the end of the month in which death occurs. If not paid by this deadline, HMRC charges interest. The tax can be paid in installments over 10 years for certain assets like property and business assets, but interest is still charged.