Do I have to pay inheritance tax?

Do I have to pay inheritance tax?

You’ve inherited or otherwise come into a lump sum of money and your one big question is: how much inheritance tax will I have to pay?

The simple answer is none. And this applies to 99% of inheritance cases. In the event that there’s tax to pay on inheritance, this will be paid before it reaches you.

What should I do with my inheritance or lump sum?

If you don’t have any tax to pay on any inheritance, your next big question will probably be: what is the best plan for my money? We’d recommend getting professional advice to help, or trying our app. Not up for either of those? Well here is a standardised process you could follow.

The suggestions are for £50,000 but it could be applied for a smaller or larger amount.

Unsure what some of these terms mean? We’ve got you covered:

High-interest debt: This is a loan repayment where the interest you’re paying back is above the national average. For 2018-19 this was 2.5%.

Tax: If you’re self-employed this is the amount of income tax you pay on your profit, not your overall income. Take a look at the Money Advice Service guide if you’re unsure if and how much you should be paying.

Cash ISA: A product that allows you to earn tax-free interest on your savings.