Inheritance Tax Explained

Not every estate is subject to inheritance tax, but where it applies, it must be addressed as part of the probate process, often before the Grant of Probate is issued.

As of 2026, inheritance tax may apply where the total value of the estate exceeds £325,000. The rate is 40% on the amount above that threshold. An additional allowance of up to £175,000 may apply where a residential property passes to direct descendants, potentially increasing the effective threshold to £500,000.

Married couples and civil partners can leave assets to each other free of inheritance tax, and any unused allowance can be transferred to the surviving partner's estate, potentially doubling the threshold available on the second death.

Reliefs may also apply in certain circumstances, including for business and agricultural property, which can significantly reduce or eliminate a liability.

Accurate valuation of all assets, including property, savings, and investments, is essential before the application is made. Errors in valuation or reporting can delay the grant and may result in additional tax liability or penalties.

At MJV Solicitors, we guide executors through the inheritance tax position as part of the wider probate process.

Inheritance Tax FAQs

When does inheritance tax apply?

Where the estate exceeds £325,000, with a rate of 40% on the amount above.

Is there an additional allowance for property?

Yes, up to £175,000 where a home passes to direct descendants.

Can inheritance tax be reduced?

Reliefs and exemptions may apply depending on the circumstances of the estate.

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Purchase price	Our fee	VAT	Total
£0-£100,000	£600	£120	£720
£100,001 - £150,000	£650	£130	£780
£150,001 - £200,000	£700	£140	£840
£200,001 - £250,000	£750	£150	£900
£250,001 - £300,000	£800	£160	£960
£300,001 - £400,000	£850	£170	£1020
£400,001 - £500,000	£900	£180	£1080
£500,001 - £750,000	£1000	£200	£1200

Additional charge and explanation	Our fee	VAT	Total
Bank transfer fee	£30.00	£6.00	£36.00
Independent ID verification (per person)	£5.00	£1.00	£6.00

Charge	Our fee	VAT	Total
Purchase of a leasehold house	£100.00	£20.00	£120.00
Purchase of any other leasehold property	£150.00	£30.00	£180.00
Purchase of a shared ownership property	£250.00	£50.00	£300.00
Gifted deposit	£50.00	£10.00	£60.00
New build property	£250.00	£50.00	£300.00

Local Authority’s current search fee (if Blackpool, Wyre or Fylde)	£122.70 inc VAT
Drainage and Water search fee	£79.50 inc VAT
Environmental search	£71.40 inc VAT
Land Registry priority title search	£3.00 no VAT
Bankruptcy search - £2 per seller named on the Register of Title	£2.00 no VAT
Land charges search - £2 per seller named on the Register of Title	£2.00 no VAT

Purchase price	Land Registry registration fee (no VAT)
£0 - £80,000	£20.00 no VAT
£80,001 - £100,000	£40.00 no VAT
£100,001 - £200,000	£100.00 no VAT
£200,001 - £500,000	£150.00 no VAT
£500,001 - £1,000,000	£295.00 no VAT
£1,000,000 and above	£500.00 no VAT

Inheritance Tax Explained

Inheritance Tax FAQs

Call: 01253 858231

info@mjvlaw.co.uk

Cleveleys Office

Blackpool Office

Conveyancing price guide

Introductory paragraph explaining price transparency and why the costs are displayed below.

Purchasing

Selling

Purchase price	Our fee	VAT	Total
£0-£100,000	£600.00	£120.00	£720.00
£100,001 - £150,000	£650.00	£130.00	£780.00
£150,001 - £200,000	£700.00	£140.00	£840.00
£200,001 - £250,000	£750.00	£150.00	£900.00
£250,001 - £300,000	£800.00	£160.00	£960.00
£300,001 - £400,000	£850.00	£170.00	£1020.00
£400,001 - £500,000	£900.00	£180.00	£1080.00
£500,001 - £750,000	£1000.00	£200.00	£1200.00
Over £750,000	To be negotiated	To be applied	To be agreed