Introductory tax guides

This subtopic contains introductory guides to the main taxes and tax concepts which are relevant for Private Client practitioners. Previously referred to as Quick Tax Guides, each guide is intended to be an introduction to the key aspects of a particular tax and its applications, as well as compliance aspects.

Inheritance tax (IHT)

The most common incidence of IHT is on the deemed transfer of value that takes place on a person's death. IHT may also be payable on certain lifetime transactions (such as transfers into trust). For a UK domiciled individual, IHT is payable on worldwide assets (with credit for tax paid overseas), whereas a non-UK domiciled individual will, in general and subject to exceptions, only pay tax on assets situated in the UK. The concept of domicile is critical to the scope of IHT.

There are a variety of reliefs and exemptions from IHT, including business property relief, agricultural property relief, normal expenditure out of surplus income, quick succession relief, taper relief and the annual exemption. Furthermore, liabilities and debts may reduce IHT payable.

For a full overview of IHT (including compliance aspects), see Practice

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