Do you pay UK Inheritance Tax on assets abroad?
From 6 April 2025, the UK’s approach to Inheritance Tax (IHT) on assets abroad has shifted from being domicile-based to residence-based.
Guides for Beneficiaries and Executors
Can you get a loan against your inheritance?
Yes, you can get a loan against your inheritance. This is called an Inheritance Advance and allows you to access the money before probate.
What is estate planning?
Estate planning is the process of deciding how your assets, like property, money and investments, will be distributed after you pass away.
What happens with life insurance and inheritance?
If your life insurance is in a trust, then it is not liable for Inheritance tax. If it is not, then it is liable for taxes.
Do beneficiaries pay Inheritance Tax in the UK?
No, beneficiaries don’t pay Inheritance Tax in the UK. Inheritance Tax is paid by the executor of the estate of the person who has passed away.
How much can I borrow from my future inheritance?
If you’re going to receive an inheritance, you can usually borrow up to 50% of your share early with an Inheritance Advance.
Can I take out an inheritance loan if the other beneficiaries don’t want one?
Yes, you can. An inheritance loan is based on your share of the estate. Because of this, you don’t need permission from the other beneficiaries.
How much of an estate do you get tax-free?
In the UK, you can pass on up to £325,000 of your estate tax-free, and in some cases, this goes up to £500,000 if you leave your home to children or grandchildren.
When is your Inheritance Tax due?
In the UK, Inheritance Tax is due within 6 months of the person’s death. If the tax isn’t paid on time, HMRC may start charging interest on the balance.
How much do Britons pay in Inheritance Tax each year?
During the 2024–25 tax year, Britons paid a record £8.2 billion in Inheritance Tax, up from £7.5 billion in the previous year.
