Inheritance Tax - How Much?

Taramitz

My parents own their house, worth about £180,000. There are six children. Will we have to pay inheritance tax on the value of the house? I read somewhere that this is not classed as `earnings` and therefore no tax would be payable.

Bossyboots

You do not pay inheritance tax, the estate of the deceased does. This would not be relevant until the second of your parents dies.

In any event, if this is their only asset then it is well below the threshold anyway so not Inheritance Tax is payable.

Fran

Taramitz,

I have moved this to the "Cutting tax" board.

Robert_Sterling_3

"My parents own their house, worth about £180,000."

Good. Do they have other significant assets?

"There are six children."

The number of children makes no difference.

"Will we have to pay inheritance tax on the value of the house?"

NO

The first £275,000 is free of Inheritance tax at present.
I think it goes up to £300,000 next year.
It is fairly easy for parents to pass on £275,000 each
i.e. £550,000 at present £600,000 next year.