Inheritance Tax (IHT) is paid on the estate, when the owner of that estate dies.
Currently the UK Government state (as per 2016/2017) £325,000 of an individual's estate is not liable to Inheritance Tax. For married couples it is currently £650,000, if the full allowance is passed to the surviving spouse. Anything in excess of this amount is taxed at 40% on death.
Even if you are living outside the United Kingdom you will still be subject to IHT which is often a mistake many expatriates mistake.
Let PWS Group financial advisers explain the options available, to help you mitigate your liability.