Pembrokeshire residents owe HMRC £5 million in inheritance tax, figures released this week reveal.

Researchers explored recent government data which revealed the estimated number of estates still owing inheritance tax, and the estimated value of this tax.

In Pembrokeshire £5 million was owed from 42 estates, the fifth highest amount in the whole of Wales.

Inheritance Tax is a tax on the estate of someone who has died, and includes their property, money, and possessions.

It is estimated that 699 estates may still owe inheritance tax in Wales, amounting to an estimated £97 million.

Within Wales, it was revealed that Cardiff residents owed the most inheritance tax overall with £11 million owed from 96 estates.

Gwynedd owed the less with £3 million from 36 estates.

The figures estimate that the average tax value unpaid per estate is around £138,770 in Wales. In comparison, the average value of unpaid tax per estate in the South East is around £216,433, and £300,716 in London.

An estate will only be liable to pay Inheritance Tax if the value is over the threshold of £325,000.

“Inheritance tax is charged on the value over £325,000 at a rate of 40 per cent,” said Joel Evans, Partner at Devonalds Solicitors.

“So those with a household wealth of just over this may find they are unable to pay in order to claim their inheritance.

“There are exemptions to this, for example, an additional allowance of £175,000 can be applied against property if it passes to direct descendants.

Also, any part of the estate passing to a spouse/civil partner is exempt from Inheritance Tax. What’s more, those who experience a second death in a marriage/civil partnership can apply to add any part of the allowance which was unused after the first death.

“Overall, the total allowance can be up to a £1 million in some instances. Even so, the tax can act as a significant monetary setback for beneficiaries looking to claim their inheritance. Also, the complexities of the HMRC inheritance tax forms, which can be a lot to handle whilst grieving the death of a close family member, can also compound the stress.

“There are solutions designed to help, including IHT loans and instalment plans for those who are struggling. However, interest rates can be high on these plans, so it’s important to seek the advice of a specialist wills and probate solicitor to prepare your family for such an eventuality and explore the avenues available to you. They can also help you to complete the complex HMRC forms, relieving the stress.”

If you’re looking for help paying inheritance tax in the South Wales area, filling out IHT forms or with the administration of the estate, be sure to get in touch with the team at Devonalds by heading to their contact page.