When you die, if qualifying assets in your estate are worth more than £325,000 (known as the “nil rate band”), Inheritance Tax (IHT) will be due on any amount over that figure. However, there are reliefs and exemptions that can be applied to either reduce or eliminate the IHT liability. One of these is taper relief which is available in certain circumstances relating to gifts. We receive regular requests from clients asking, “How does taper relief work?”.