Don't be rash with cash

INHERITANCE TAX CHANGES ON WAY BUT EXPERTS SAY...

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INHERITANCE tax is something you don't often have to grapple with until a death in the family.

But grasping the basics can make financially savvy sense, especially as the autumn budget is expected to bring about some changes.

"Inheritance tax is one of those areas that is always under the spotlight, and it seems to be a popular point of discussion at the moment," says Reme Holland, financial planning partner at accountancy firm Albert Goodman. "We'll see what happens in October, November time, but I'd always recommend not making any rash decisions. Seek advice first before you do anything."

How does inheritance tax currently work?

"Every individual has a nil rate band of £325,000, which means you can have assets worth up to £325,000 and not be liable for any inheritance tax (IHT)," says Holland. It's only on assets that exceed this you have to pay IHT, which, as standard, is 40% over the threshold.

Are there any exemptions?