How much inheritance tax you will pay in 2024 – and what you can do about it

Grieving families set to pay 15bn in inheritance tax bills by 2032-33 , up from 7bn in 2024-25 .

Each individual is taxed at a rate of 40pc on all their assets above a threshold 325,000 .

From April 2017 an added protection known as the “family home allowance”, or “main residence nil-rate band’, began to be phased in.

This is now worth 175,000 , and applies when you leave your main property to a direct descendant.

Equity release is a form of debt that must be repaid either when you die or go into long-term care.

As borrowing costs are expensive it is only suitable for those with large estates.

Pension savings are considered to be outside of your estate for IHT purposes.

Parents wanting to send their children to private school could benefit from the fact that transfers made for children’s education are exempt.