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Inheritance Tax

How to Calculate Inheritance Tax

Calculating Inheritance Tax correctly requires more than comparing the estate value to a single threshold. A number of allowances, exemptions, and reliefs interact to produce the final taxable figure.

Step 1: Gross estate value

Add together the date-of-death value of all assets owned solely by the deceased, their share of jointly owned assets (for tenants in common), and any gifts made in the seven years before death not covered by an exemption.

Step 2: Deduct liabilities

Deduct all outstanding debts, mortgages, credit cards, utility bills, and reasonable funeral costs to reach the net estate value.

Step 3: Apply exemptions

Deduct any exempt amounts, such as assets passing to a surviving spouse or civil partner (generally fully exempt) and assets passing to qualifying charities.

Step 4: Determine the available threshold

Calculate the total nil rate band: the standard £325,000 plus any TNRB, RNRB, and TRNRB that apply.

Step 5: Calculate the tax

Subtract the available threshold from the net taxable estate. Multiply any positive result by 40% for the IHT liability. A reduced rate of 36% applies where at least 10% of the qualifying estate is left to charity.

Why you should not attempt this without proper guidance

Each step involves specific rules and documentation. An error at any step affects the final liability. Missing a valid allowance means paying more IHT than the estate owes. YouCanDoProbate performs every step of this calculation automatically and produces an accurate IHT400.

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The staff team were supportive and return calls were reasonably prompt, its important to account for other customers feeling swamped by the experience too. The online forms were clear and the finance running totals displayed at the top of the form so calculations are as exact to the info you put in to the form. I liked the fact that I felt more confident in completing probate, that I did not feel silly when asking questions. The team are respectful and account for the emotional situation you fnd yourself in.

Betty Tuur
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Easy step by step guide

Simple to follow modules and access to helpline made it all quite straightforward.

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Amazingly high level of customer service and advice. Very easy to use.

Andrea
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Highly recommend this company

Highly recommend this company. The intuitive software is easy to use and the friendly and professional telephone support is excellent. On the advise of the team I posted off my documents as I had considered using the government online form assuming it may be quicker! However Probate was granted in 15 days from when I posted my documents. Thank you to all the team at You Can Do Probate for making a stressful and emotional task much easier to navigate without the need of expensive solicitors! Nb The only improvement that I feel would be beneficial is the function to print the breakdown of all the values and calculations

SJ
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You Can Do Probate has saved me thousands

You Can Do Probate has saved me thousands of pounds. The system is incredibly easy to use. You do need to do your research so that you can answer the questions honestly and accurately, but everything you need is either included in the guidance in the system itself or readily available on the gov.uk website. The system also does a “sanity check” before you commit to paying for the license, to check that the system is suitable for your specific needs. So, you know before you commit whether the system is suitable for your specific circumstances. I submitted the forms prepared for me by You Can Do Probate and received my grant of probate 7 weeks later. Very happy.

JEH Executors
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Great website – would recommend

I found this website incredibly helpful and it saved me a huge amount of money and time. I had been quoted £5-7k for a solicitor to do my mum’s probate, so I thought I would give YouCanDoProbate a try. It was very easy – the website guides you through. When I did have a query, I sent through the question and it was answered really quickly. Also, it was handy that it saved what I had done and I was able to leave it and come back to it again, so you don’t have to do it all at once. I would very much recommend.

customer
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Application for Probate online.

YCDP is excellent. As an 80 year old with very basic and fairly rubbish IT skills I was a bit apprehensive but found the process straight forward and easy to understand. It was very helpful to be given a list of the information I would need before starting. Having been quoted a price of over £1000 from a solicitor to complete the probate application the cost of using YouCanDoProbate was such a saving. I would recommend them to anyo

Mrs Sally Baxter
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Probate forms

When completing the forms, any query I had as soon as I emailed them they got back to me straight away. Also it would not let you finish the section until you had filled out all that was needed. Helpful that you could save and go back in when you had the answer you needed.

anna smullen
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90 years old Computer Dummy & Dyslectic

Being 90 years old found the prospect of applying for probate extremely daunting, the registrar of deaths told me to approach the “Bereavement Support Group” who in turn informed me of the web site to down load forms from, this I achieved (all 22pages), and commenced to fill in the answers required, got stuck on one question but the system would then not let me to advance to stage 2 until all was 100% on stage 1. Then phoned “You Can Do Probate” and a gentleman then proceeded to not only help with the unanswered question in Stage.1 but over the next two hours took me thro all the other stages, after which he told me to read very carefully thro the answers for any typo’s or anything not to my liking and to phone him (Giving me his personal phone no) if so. there was one item I was not happy with so made contact again, and he then very carefully took me thro the procedure to make these changes (could never achieved by myself) Then on the 24th July mailed all pages to the Probate Service and on the 14th August received my Probate Certificates Wunderbar

John William Dennis Symonds
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This is an excellent service which is…

This is an excellent service which is very good value for money and lives up to its name – yes, you can do probate yourself if you use this platform. In particular, being able to call up and put your questions to an expert, without having to worry about increasing the cost, is a godsend and I wouldn’t have managed without it (thank you Tom!). The process is still time consuming and it isn’t easy, but this service makes it possible and way more affordable than using a solicitor.

Pete Rawlings
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Save a fortune, use YOUCANDOPROBATE!

This service isn’t easy but it is brilliant! From our previous experience of using a solicitor for probate, who asked us to do 80% of the work, searching for bank records, certificates etc. etc. this service was difficult, not easy, but well worth it! The support team are excellent and help with those questions you can’t easily answer. Google helps immensely also. But the real benefit is saving at least 2% up to 5% of an inheritance. That would be most of one of my late mother-in-law’s grandkids inheritance. Bargain price makes it worth it! I am happy to strongly recommend this excellent service!

Liam
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Fantastic service

Fantastic service. Extremely clearly laid out, very intuitive and lots of online help. I used the contact twice: once promptly answered via email, the second via a booked appt – again very polite and incredibly helpful. I took my time over entering and double-checking details but, from beginning to end (IHT done and probate in hand) took 10 weeks including turnaround time for documents. Great value for money and strongly recommended.

Simon Bennett
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Additional costs: The probate registry fee of £526 (for all estates over £5,000) and any additional official copies at £2 each. (Payable directly to HM Courts and Tribunals Service by cheque or postal order, enclosed with your application forms).
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© YouCanDoProbate • YouCanDoProbate is a trading name of Kabing Ltd.
YouCanDoProbate is not a law firm, is not authorised to conduct reserved legal activities, and is not regulated by the Solicitors Regulation Authority (SRA). Our digital service is a self-help online platform for you to input data, navigate forms, and manage your own inheritance tax returns and probate applications as a lay applicant. It provides administrative utility tools, forms, and general information. Our telephone, email, support ticket, and live chat support provide administrative and technical guidance only. We do not provide legal, estate planning, or tax advice, and our service is not a substitute for a regulated professional’s advice regarding complex estate or tax matters.
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