Money Talk: Inheritance Tax & the nil rate band explained – how much will you have to pay? | Personal Finance | Finance

Alternatively, he suggested, other sources for information include the Citizens Advice Bureau, and the Money Advice Service, as well as HMRC.

Also providing input into this Inheritance Tax situation, was Neil Rushton, Chartered Financial Planner at Old Mill.

Mr Rushton said: “The ‘tax free’ element is what is known as the nil rate band, which is an allowance set at £325,000 per individual. The value of an estate above this amount would potentially be taxed at 40 percent.

“However, there are further points which need to be considered when calculating Inheritance Tax liabilities.

“If your mother was married and her spouse predeceased her, a transfer of any unused allowance could be claimed against the estate of your mother.

“For example, a transferable nil rate band up to the maximum of £325,000, would increase the total nil rate band to £650,000 and no Inheritance Tax would be due on your mother’s estate.

“Secondly, if the property in your mother’s estate was her main residence, and the beneficiary of the property is a direct descendent/s, including step-child, adopted child, or foster child, there could be a further allowance available, known as the main residence nil rate band.

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