How much tax is payable is dependent upon your marital status and the overall value of your estate. If the value of your estate is above the threshold for your marital status, you will be taxed 40% on anything over the threshold.
For couples who are married or in a civil partnership, the inheritance tax threshold is £650,000 between them. If your estate is worth less than this amount, you will not have to pay inheritance tax.
However, if your joint estate is worth more than this, you will be expected to pay 40% on any amount over the £650,000 threshold. For example, if a couple’s joint estate is worth £700,000, you will only need to pay inheritance tax on the extra £50,000.
If you are single, the inheritance tax threshold is £325,000. Anything over this figure will be taxed at 40%.