Estate duty was replaced in 1975 by Capital Transfer Tax, which was replaced by Inheritance Tax (IHT) in 1986. Inheritance Tax is a significant revenue generator for the UK government, around £2.4bn in 2001. The current rate is 40% on the value of all the estate over £250,000. On death there is a minimum of 12 months of probate, during which solicitors assess the value of the estate and consider challenges. If there is insufficient cash to pay the tax and the solicitors' bill, then assets must be sold.
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