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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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Grant of Probate within 8 weeks from signup

Less than 8 weeks from signing up to YCDP to the Grant of Probate arriving in the post! As others have said – no need to pay through the nose for a solicitor, the YCDP platform is far quicker and far cheaper than using a solicitor. All relevant IHT forms were generated with ease, printed and then sent via post with accompanying requested documents – this was acknowledged within 3 weeks – then the generated PA1P probate form was sent to HMCTS (again, with accompanying documents & cheque) – Grant of Probate received in the post less than 2 weeks later! Fantastic and saved me thousands. Very happy with the platform and service, relieved to have found this alternative as opposed to instructing an expensive solicitor.

D M
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Easier to complete than I initially…

Easier to complete than I initially thought.

Lynn Wasnidge
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I would highly recommend…

I would highly recommend YouCanDoProbate. I had originally been quoted thousands by the Co-op legal team. It was an extortionate amount, and I thought “Is it really that difficult?” After Googling I came across YouCanDoProbate and read the reviews. At first I thought “What’s the catch?” I did more research to check out the company more, and indeed everything looked genuine, because it is! I signed up, and simply followed all the sections. The web layout/dashboard is very clear and user friendly. Keen to make sure I was accurate in my thinking, I did use the e mail questioning a couple of times. The responses were very quick and thorough, explaining everything clearly and in simple terms. At the end, all forms are generated ready to print. Having spoken to friends who had lost parents recently, they have said all the information they had to provide to a solicitor was the same as I simply had to tap in. They paid the thousands I had been quoted. You can obviously do all this independently, and simply fill in forms yourself, without using YouCanDoProbate even. But if you are like me thinking “Can I do this? What happens if I get it wrong?” Then YouCanDoProbate gives you the easy web layout, all the calculation functions and the ease of a form completed. This service took the fear out of the process as I didn’t feel alone with no support. I also feel proud of myself that I have managed to achieved this without being ripped off by legal companies who want to take a percentage of the estate. Once submitted, my application was processed within 3 weeks, it flew through, which proves it must have been accurate. I would definitely recommend and use again if I ever needed to complete probate in the future.

Janine Mainwaring
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I’m never one for leaving reviews

I’m never one for leaving reviews, but this service genuinely deserves the 5* review I’m giving it. I completed the probate application with my Mum shortly after my Dad’s passing. My Mum had been quoted thousands of £s to do this on her behalf, which I felt was unreasonable. After a quick Google I found this website and suggested it to my Mum. She was sceptical at first so I offered to help, and having completed the intuitive online process with her, she quickly told me she could have done it herself! It’s not a nice thing to deal with, particularly at such a difficult time, but I couldn’t recommend this highly enough. It genuinely works and we have just received our letters of administration.

Joe Wilkinson
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When the solicitors quoted me £9,000 I…

When the solicitors quoted me £9,000 I decided to look for help elsewhere. I’m so glad I did as this company was brilliant and was a great help when I called them when I got a bit stuck with a question. Definitely highly recommend and this saved me a great deal of money.!

Pringo
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An excellent service

Really easy to use and an excellent and speedy help line if you have a query. All in all very good value foe money.

Michael Trenerry
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Easy and very cheap DIY probate with…

Easy and very cheap DIY probate with full money back guarantee

caba sinko
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I signed up with trepidation having…

I signed up with trepidation having never had to do this before!! However I managed all the form filling with ease and much to my surprise did not have to telephone for help once. I am 70 years of age and would not describe myself as a computer expert in anyway and am a bit of a dinosaur! I would not hesitate to use this service again and will certainly recommend it if asked. For the record I received official notification and paperwork from HMC and Justices that probate had been granted within 21 days of posting the forms. Perhaps I was lucky but this service was idiot proof and saved me the cost of a solicitor.

ken roberts
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Easy to understand

Easy to understand, online forms easy to understand and complete. telephone back up very good

David Gray
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I was quite daunted by the procedure of…

I was quite daunted by the procedure of probate as I’d never been in this position before, but you made the whole process almost easy. Adam was brilliant, if I had a query or was unsure about anything he helped me to understand and navigate the forms successfully. All your staff were efficient, helpful and friendly and I would recommend you to anyone without a moment’s hesitation. Thank you so much

Maureen
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Fantastic platform for probate.

To significantly reduce the cost of using a solicitor to do probate for my late mother; we decided to attempt probate ourselves. The platform was excellent and made what could be a difficult task, very manageable. The information required would have to be given to the solicitor, so it didn’t feel challenging inputting it ourselves (although her estate was relatively straight forward). It was great having support at the end of the phone. We had a couple of queries, which were responded to quickly and well. We were so impressed with the clear instructions at each stage and how the relevant forms were automatically generated for both HMRC and subsequently for probate. From starting to input data to gaining grant of probate took us 8 weeks! Would highly recommend.

Zen Zenny
Trustpilot five star rating
Excellent service

Clear, easy to follow information and instructions on the website; helpful, knowledgeable and friendly staff who were quick to respond to all of my queries either on the phone or by email; really speeded up and simplified the process of applying for probate.

Suzie W
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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 an online platform providing legal forms and information. YouCanDoProbate is not a law firm and is not regulated by the Solicitors Regulation Authority (SRA). Our online probate and inheritance tax service is an online platform providing probate and inheritance tax forms and information to allow you to complete inheritance tax returns and apply for probate yourself. Our telephone, email and livechat support provides guidance only, we do not provide bespoke advice, including estate planning or tax advice and it is not a substitute for a lawyer’s advice about complex estate planning or tax issues.
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