Inheritance Tax (often called IHT) is paid on your estate after you die. But it’s not universal and most families will never need to pay it on behalf of their deceased loved one.
It depends on the size of your estate (after any debts have been taken off). Currently:
That means that estates worth less than CHF325,000 pay no Inheritance Tax. Married couples and civil partners can transfer any unused Inheritance Tax allowance to the remaining partner when they die. This means the threshold for that partner can be raised to as much as CHF650,000 in 2017-2018.
In addition, a new allowance called the Residence Nil Rate Band was introduced from April 6, 2017 starting at CHF100,000 and this can be added to the existing CHF325,000 Inheritance Tax threshold where a home (or the proceeds from a previous home) is left to children (including step, foster and adopted children), grandchildren or great grandchildren.
Yes, you can give away gifts worth up to a total of CHF3,000 each tax year. You’re also allowed to give your family and friends gifts that aren’t subject to tax. These include gifts:
worth up to CHF250, to an unlimited amount of people.