IHT on joint property

[325iMSport]

How does inheritance tax work on a property that is jointly owned?

For example;
House is worth £600k
Owned by mum and son 50/50.
Mum leaves in house, son does not.
Mum passes away.

I believe son will automatically get mums 50%?

But will there be any inheritance tax to pay? I believe no as mums estate is only worth £300k which is less than the £500k IHT threshold?

[thekingisdead]

Firstly determine how the property is owned: joint tenancy vs tenants in common.

Under the former I think it automatically passes to the son.

Under the latter it’s inherited per the beneficiaries of any Will, if there is one.

Either way it does sound like no IHT is due…but I’ve only done probate once and am not an accountant.

[alscar]

325iMSport said:

How does inheritance tax work on a property that is jointly owned?

For example;
House is worth £600k
Owned by mum and son 50/50.
Mum leaves in house, son does not.
Mum passes away.

I believe son will automatically get mums 50%?

But will there be any inheritance tax to pay? I believe no as mums estate is only worth £300k which is less than the £500k IHT threshold?

Depends on how the title was held and assuming a will , if it was left in accordance with such and to the son.
Also whether or not Mum has other assets which get added to the estate.
If the total estate is less than £325k than no IHT.

[Enut]

Also residence nil rate band and any inherited NRBs from mum's deceased spouse (if any) to consider, if needed.