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Can I deal with inheritance tax through Self Assesment?

There is no space on the tax return for inheritance tax. This is because it is largely a tax on what you leave when you die (including gifts made in the seven years before). The number of estates which are taxed is expected to be around one in 25 by 2014–15.

The tax rate remains a hefty 40 per cent of anything over £325,000 in 2012–13. For deaths on or after 6 April 2012, a lower rate of inheritance tax of 36 per cent applies where 10 per cent or more of the deceased person’s net estate is left to charity. However, in both cases there is plenty that can be done to reduce the amount paid – as long as you plan carefully.