The rules surrounding ‘excepted estates’ have changed for anyone who dies on or after 01 January 2022. Estates classed as being ‘excepted’ may not require heirs to report the estate’s value as long as there is no inheritance tax to pay.
To count as an excepted estate, it must:
- Have a value below the inheritance tax value (£325,000)
- Be worth £650,000 or less and any unused threshold is being transferred from a spouse/civil partner who died first
- Be worth less than £3m and the deceased left everything in their estate to their surviving spouse/civil partner who lives in the UK or to a qualifying registered UK charity
- Have UK assets worth less than £150,000 and the deceased had permanently been living outside the UK when they died
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