Why might my grandchildren pay 64% inheritance tax instead of 40%?

Video will appear soon

Why might my grandchildren pay 64% inheritance tax instead of 40%?

The64% tax rate that I talk about is relevant when you leave money to your children and you haven't planned early enough or you die earlier than expected. You die and 40% IHT is payable on some or all of your estate.

Now, when that money is then passed from your children to your grandchildren, it's possible that your children will also have an inheritance tax bill. So the same money on which they've already paid 40% is taxable again at 40%.

So 40% of 40% is a net 64% of the original figure, and that's how we get to the 64% tax rate.

More related Questions

Our specialist inheritance tax service is easier, simpler and more cost effective than instructing a Lawyer, Accountant or Financial Adviser.

Watch how we solved our client Frank's inheritance tax problem and saved him both time and money.

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

Copyright © 2021 Bluebond.co.uk
-
Copyright Notice
-
Legal Disclaimer
-
Terms & Conditions
-
Privacy Policy