Donald Reid Group

An overview of inheritance tax

Inheritance tax is levied on a person’s estate when they die and on certain gifts made during their lifetime. Read more about inheritance tax (IHT), possible reliefs and exemptions, with opportunities to minimise the impact of IHT.

This fact sheet, "Inheritance Tax – a Summary", highlights some of the key issues you should consider when developing your inheritance tax plan.

A general overview of inheritance tax:


  • The scope of inheritance tax
  • Residence nil rate band
  • The impact of downsizing your home
  • Charitable giving
  • Inheritance tax on lifetime gifts
  • Inheritance tax on death
  • Estate planning
  • Gifts to individuals during their lifetime
  • Nil rate band and seven year cumulation
  • Transferable nil rate band
  • Annual exemption
  • Gifts between spouses
  • Small gifts
  • Normal expenditure out of income
  • Family maintenance
  • Wedding presents
  • Gifts to charities
  • Business property relief
  • Agricultural property relief
  • Use of trusts



Other considerations include:-


  • The use of life assurance to remove value from estate and to fund inheritance liabilities
  • Is your Will up-to-date, taking account of recent legislation?

If you would like to discuss inheritance tax and your personal circumstances, please do get in touch with our team of tax specialists at DRG Chartered Accountants. We would be delighted to hear from you.


DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.




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