Inheritance tax: How much will you pay this year? Tips to reduce the levy | Personal Finance | Finance

That means they’re not yet fully out of someone’s estate. So if they die within seven years their value may still be taken into account when inheritance tax is being calculated.

The amount of tax payable tapers over the seven-year period.

2) Make gifts to your spouse
There is no IHT payable on gifts between spouses, so people can give them whatever they like during their lifetime.

There may, however, be capital gains tax to pay if people are transferring assets other than cash, such as property or shares, from one name to another.

Ms Glasgow said: “Importantly, if you die before your spouse you can leave your entire estate to them free of IHT, and also your unused nil rate band and residence NRB, if you qualify for the latter.

“That means that on the second death, up to £1 million can be left to the family or other beneficiaries free of IHT.

“Importantly, if you’re not married or in a civil partnership, there is no exemption and IHT is potentially payable if you leave assets to your partner. “