Your ‘estate’?
A person’s estate includes the total of:

  1. everything owned in his or her name
  2. the share of anything owned jointly
  3. gifts from which he or she keeps back some benefit, for example, a house still lived in and maintained, although given to someone else
  4. gifts given in the past 7 years which are over the allowable gift allowance (see giving it away)
  5. assets held in trust from which he or she gets some personal benefit, for example, an income.

What is the threshold at the moment?
The threshold at which an estate becomes liable for inheritance tax on death on or after 6 April 2008 is £312,000. The value of estates above the threshold is taxed at 40%.

If your estate (including assets held in trust and any gifts you have made within seven years of your death) is less than the threshold, no inheritance tax will be due on it.