Inheritance Tax must be paid on assets and gifts, if the assets or gifts are valued at over £325,000.
The tax is payable at 40 per cent on the amount over this threshold.
You do not usually have to pay inheritance tax if you give things away to your spouse or civil partner (if you both live in the UK), charities, political parties, and some national institutions like National Portrait Gallery, universities etc.
These rules apply whether you give this gift in your lifetime or via a Will.
Maintenance payments to someone who is “old or infirm” are also exempt.
If at least 7 years before your death, you set up a trust fund for someone who is disabled, this counts as a ‘potentially exempt transfer’. Inheritance Tax will not be paid.