Martin Lewis explains Inheritance Tax rules on podcast

In a recent episode of his podcast, Martin Lewis, founder of MoneySavingExpert.com, tackled the often misunderstood topic of Inheritance Tax in the UK. He revealed that a significant number of people, nearly half of his social media followers, expressed anxiety regarding this tax. However, Lewis reassured listeners that only estates valued over £325,000 are liable for Inheritance Tax, which means that the vast majority of the population will not be affected. In fact, he pointed out that only 4% of estates paid this tax in the past year, despite widespread concern among the public. Lewis elaborated on the definition of an estate, which includes all assets such as property, money, and possessions. He explained that if an individual's estate is valued below the £325,000 threshold, they will not incur any Inheritance Tax. Furthermore, he highlighted that anything left to a spouse is exempt from this tax, providing a significant financial advantage for married couples and those in civil partnerships. Additionally, Lewis discussed how the threshold can be increased to £500,000 if the main residence is passed on to children. This means that individuals can effectively leave a larger estate without incurring tax liabilities. He emphasized the importance of understanding these rules to ensure that loved ones benefit from their inheritance without unnecessary tax burdens. Overall, Lewis's insights aim to alleviate fears surrounding Inheritance Tax and encourage individuals to plan their estates wisely, taking advantage of legal exemptions and allowances available to them.