Firstly, what is it?
Inheritance Tax is a tax on the estate of a deceased person. The Inheritance Tax threshold is the amount up to which an estate will have no Inheritance Tax to pay. This threshold currently sits at £325,000.
How to reduce Inheritance Tax:
If you would like to reduce the overall amount of tax due from your estate then you could make a Will leaving money to a Charity or Community Amateur Sports Club. You can write a Will leaving a fixed sum, known as a ‘Pecuniary Legacy’, alternatively you can write a Will leaving part or all of your estate, once all other gifts have been distributed, to a charity or charities of your choice. This is known as a ‘Residuary Legacy’. You are also covered by the same exemption from Inheritance Tax if you were to give to a UK Charity in the seven years prior to your death.