Inheritance Tax Question
Discussion
Hi all, hopefully a relatively quick question on IHT.
My father and I jointly owned a property. Said property was the family home and sold in 2020. Given the age of my father (77) he passed his share over to my son.
Son purchased the new family home to work around a hefty stamp duty bill, but was wondering in the event of passing what would (if there is) the IHT cost be?
Original property was worth £300,000. 50/50 split. £50k was a cash gift and £100k was used to purchase the new property.
Dad has a few policies/stocks floating around but nothing substantial / no other properties.
My father and I jointly owned a property. Said property was the family home and sold in 2020. Given the age of my father (77) he passed his share over to my son.
Son purchased the new family home to work around a hefty stamp duty bill, but was wondering in the event of passing what would (if there is) the IHT cost be?
Original property was worth £300,000. 50/50 split. £50k was a cash gift and £100k was used to purchase the new property.
Dad has a few policies/stocks floating around but nothing substantial / no other properties.
Unfortunately, there's not really any tax question which is quick and simple to answer. 
First, how much was your father's estate worth at time of making the gift?
If it's less than £325k, his single person nil rate band, it's very unlikely there will be any IHT to pay. That is unless his other assets and policies suddenly increase in value
In addition, if he sold the house to downsize or move into care, his estate will also be able to claim the main residence nil rate band of up to £175k, but in your case this will be limited to £150, his share of the residence.
Finally, if his wife (not divorced) predeceased him, there may be some left over from her nil rate bands to sue against his estate.
First, how much was your father's estate worth at time of making the gift?
If it's less than £325k, his single person nil rate band, it's very unlikely there will be any IHT to pay. That is unless his other assets and policies suddenly increase in value
In addition, if he sold the house to downsize or move into care, his estate will also be able to claim the main residence nil rate band of up to £175k, but in your case this will be limited to £150, his share of the residence.
Finally, if his wife (not divorced) predeceased him, there may be some left over from her nil rate bands to sue against his estate.
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