When calculating inheritance tax, it’s important to establish the entire value of your estate because inheritance tax is currently charged at a flat rate of 40% on the total value of your estate, above and beyond £325,000.
Value of your home:
Value of any other properties you own:
Value of and stocks and shares you own:
Total cash in the bank (savings, bonds etc):
Grand Total – £325,000 = The Value on Which You Must Pay Inheritance Tax
The Value on Which You Must Pay Inheritance Tax x 0.4 = Your Inheritance Tax Liability