inheritance tax

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missmakepeace
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inheritance tax

Post by missmakepeace » Mon Nov 11, 2019 9:02 pm

Hi
Asking this for a friend.
His long term partner has recently died suddenly. She left no will and has not yet claimed her pension from work as she was under 60. We are presuming her estate will go to her siblings who are her next of kin, as she didn't leave a will. She was about to inherit a substantial sum from her late mothers estate.
My friend bought the house they lived in, but put her name on the deeds as joint tenants. The house is worth over £650,000. He is wondering if he will have to pay inheritance tax on the 50% share in the house, he retrieves following her death and if so what the percentage will be?

alyson
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Re: inheritance tax

Post by alyson » Mon Nov 11, 2019 10:34 pm

A single person has an allowance of £325,000.
Everything above £325k will attract IHT of 40%
If you were married and widowed and none of your deceased spouse’s allowance was used on his/her death you have their allowance so you can leave £650K before inheritance tax is payable.

Your friend will not be liable for IHT his partner’s estate will have to pay it.

missmakepeace
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Re: inheritance tax

Post by missmakepeace » Tue Nov 12, 2019 8:02 am

Thank You

IdefixUK
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Re: inheritance tax

Post by IdefixUK » Wed Nov 13, 2019 2:49 pm

This can be, I believe, a complex area of law. Certainly where considerable sums of money are involved I would suggest that your friend seeks professional advice from a law firm who have a specialist. It might save a lot of money and worry.

Regards

ukmicky
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Re: inheritance tax

Post by ukmicky » Wed Nov 13, 2019 11:05 pm

Yes inheritance tax is payable
Any information provided is not legal advice and you are advised to gain a professional opinion

Morgan Sweet
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Re: inheritance tax

Post by Morgan Sweet » Thu Nov 14, 2019 3:52 pm

As a joint tenant (as opposed to tenants in common) property goes automatically to the other tenant on the death of either tenant. Therefore if the house is worth £650k the half (£325k) will be under the single IHT threshold and no tax will be liable. If the estate due to other assets is then above the £325k threshold then these assets would be taxed at 40%. The Executor of the will would have to pay this tax due to the HMRC first.

This (as all my offerings) is based on experience not legal qualifications. You would be best served, as someone has already suggested, to contact a solicitor.

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