What is inheritance tax, who pays it and will it change?

Published On Apr 11, 2016, 8:12 AM

The article discusses the current state and potential changes to inheritance tax in the UK. Inheritance tax is a tax charged on the estate of someone who has died, valued over £325,000, at a rate of 40%. Currently, only about 4% of estates are liable to pay this tax, generating £7 billion annually for the government. Predictions suggest that, under current rules, roughly 7% of estates could be subject to inheritance tax by 2032. The prime minister and chancellor are considering adjustments to this tax in the upcoming budget, potentially affecting the number of those liable and the amount they pay.