Inheritance Tax (IHT) is tax payable on the property / possessions & money / belongings ('Estate') of someone who has died. This amount comes out of the funds from your Estate, and is paid by the Executor of your Will...if there is a Will ??
Inheritance Tax can be hundreds of thousands of pounds. The standard rate is 40%.
Gifts, or transfers, made whilst you are alive, may be taxed after your death, depending on the value..if it is above the current IHT threshold, and if within 7 years prior to death.
However, Agricultural Property Relief (APR)
or Entrepreneurs Relief,
allows some assets to be passed on, or transferred to someone, with reduced, or no IHT.
Agricultural Property Relief is available to the owner of agricultural property / land and working buildings, whether farmed or tenant-run....you must have owned the property for at least 2 years prior to the transfer, or death. You can pass some agricultural property and land to someone, and claim 50%, or 100% IHT Relief, if it is mentioned in a Will, as a 'Bequest', or during your lifetime, as a 'Gift', or in a 'Trust'.
This can save those close to you, hundreds of thousands of pounds.
Click on the link below for an overview of Inheritance Tax....
How it is calculated, Ways to reduce it, What is exempt, What is the allowance before Inheritance Tax is payable etc.