Solicitors Qualifying Examination (SQE) Practice Exa\

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Solicitors Qualifying Examination (SQE)! Study with quizzes featuring multiple-choice questions, hints, and explanations. Ace your exam!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the current inheritance tax (IHT) rate?

  1. 20%

  2. 30%

  3. 40%

  4. 50%

The correct answer is: 40%

The current inheritance tax (IHT) rate in the UK is indeed 40%. This rate applies to the value of an estate that exceeds the nil-rate band, which is the threshold amount that is exempt from IHT. For estates valued above this threshold, the tax is calculated at 40% on the amount that exceeds it. Understanding this rate is crucial for estate planning, as it impacts how individuals may structure their wills or financial arrangements to minimize the tax burden on heirs. The other rates mentioned are not applicable for inheritance tax in the UK. The lower rates, such as 20%, 30%, and 50%, do not align with the current legislation regarding inheritance tax, making the 40% rate the accurate choice for this question.

More Questions Like This