inheritance tax

A discussion forum for the elderly, their carers and advisers
Post Reply
missmakepeace
Posts: 38
Joined: Sun May 05, 2019 7:21 pm
Number of Posts per Page: 1
Number of topics per page: 1

inheritance tax

Post by missmakepeace »

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
Posts: 89
Joined: Tue Apr 29, 2014 1:43 pm
Number of Posts per Page: 10
Number of topics per page: 10
Location: Wales

Re: inheritance tax

Post by alyson »

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
Posts: 38
Joined: Sun May 05, 2019 7:21 pm
Number of Posts per Page: 1
Number of topics per page: 1

Re: inheritance tax

Post by missmakepeace »

Thank You
IdefixUK
Posts: 771
Joined: Mon Jan 01, 2018 12:07 pm
Number of topics per page: 25

Re: inheritance tax

Post by IdefixUK »

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
Posts: 5232
Joined: Sat Sep 27, 2008 10:13 pm
Number of Posts per Page: 20
Number of topics per page: 20
Location: London

Re: inheritance tax

Post by ukmicky »

Yes inheritance tax is payable
Any information provided is not legal advice and you are advised to gain a professional opinion
Morgan Sweet
Posts: 360
Joined: Sat Jan 03, 2015 7:47 pm

Re: inheritance tax

Post by Morgan Sweet »

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.
Post Reply