Inheritance tax is paid on an estate over a threshold (currently £325,000) when someone dies. If your estate is worth less than the threshold, or you are leaving the entire estate to your spouse or civil partner, there is no inheritance tax to pay.

However, if you are leaving gifts to other relatives or friends, and your estate is over the threshold, tax of 40% may be payable on the amount over the threshold. Gifts to charity are exempt from inheritance tax, and are deducted from the estate before inheritance tax is calculated, so leaving a gift to charity could reduce the amount of tax paid on your estate. Inheritance tax is reduced if you leave more than 10% of your estate to charity.

For more information, please contact HM Revenue and Customs, or ask your solicitor.