Inheritance tax thresholds etc
Discussion
Has anybody had recent dealings?
I know the general threshold is £325k.
It seems to rise to £475k if the estate is left in a will to the son/daughter?
But I recall that any property previously inherited from a spouse is exempt?
My father in law has an estate worth about £475k which he is leaving to my wife in his will. However, about £200k came to him when his wife died in 2014 and her half of the house went to him. AmI right in thinking he is now back to £275k and no IT is payable?
I know the general threshold is £325k.
It seems to rise to £475k if the estate is left in a will to the son/daughter?
But I recall that any property previously inherited from a spouse is exempt?
My father in law has an estate worth about £475k which he is leaving to my wife in his will. However, about £200k came to him when his wife died in 2014 and her half of the house went to him. AmI right in thinking he is now back to £275k and no IT is payable?
Are you thinking of property relief? A property passed on to direct descendants will have an additional IHT allowance of (currently) £150k, on top of the £325k annual allowance.
Is the estate made up only of his residence? If yes, it’ll be exempt as it falls below £475k. If no, the additional £150k cannot be offset against other assets in the estate - only his residence (or a property that was his residence).
Is the estate made up only of his residence? If yes, it’ll be exempt as it falls below £475k. If no, the additional £150k cannot be offset against other assets in the estate - only his residence (or a property that was his residence).
Alpinestars said:
Are you thinking of property relief? A property passed on to direct descendants will have an additional IHT allowance of (currently) £150k, on top of the £325k annual allowance.
Is the estate made up only of his residence? If yes, it’ll be exempt as it falls below £475k. If no, the additional £150k cannot be offset against other assets in the estate - only his residence (or a property that was his residence).
Yes, he inherited the other half of the house he lives in when his wife died 5 years ago valued at about £350k, and has another £75k in other assets. Is the estate made up only of his residence? If yes, it’ll be exempt as it falls below £475k. If no, the additional £150k cannot be offset against other assets in the estate - only his residence (or a property that was his residence).
If all your MIL estate went to your FIL then he will get 2 x £325k nil rate band (NRB) allowance. Then he gets 2 x 150k if his main residence is left to a direct descendant. Giving £950k in total before IHT comes into play. At April 2020 the house relief rises to £175k per person, giving him £1m in total.
If his wife used some of her NRB to leave part of her estate to others, then he get whats left. For instance, if she left £100k to others, he gets £225k to add to his estate NRB.
If his wife used some of her NRB to leave part of her estate to others, then he get whats left. For instance, if she left £100k to others, he gets £225k to add to his estate NRB.
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