Martin Lewis: What is Inheritance Tax and how does it work?

Inheritance Tax (IHT) is often misunderstood. However, considering the potential implications for your next of kin, it’s important to become clear on the facts. Martin Lewis shares five key things you need to know about how Inheritance Tax works in the UK. Find out about IHT thresholds, why most estates don’t pay it, and how being married or in a civil partnership affects your allowance. Martin also explains how gifts work, the seven-year rule, and much more. For a deeper dive into IHT, check out the full MoneySavingExpert guide: https://www.moneysavingexpert.com/fam... 00:00 Intro 00:25 Most people DON’T pay IHT 00:48 Rule 1: The marriage exemption 01:26: Rule 2: No IHT on the first £325k left to others 01:41 Rule 3: This can be boosted to £500k 02:09 Rule 4: You can pass on unused IHT allowance 03:05 Rule 5: Ways to reduce your IHT bill