Inheritance Tax rule change

Earl_2

My father passed away recently and left an estate of approx £380k so in theory there is some IHT to pay. I understand the rules changed last October and we can use my late mother's (she died in 2008) nil rate band meaning no IHT on Dad's estate?
Can someone clarify?
Thanks in advance.

sloughflint

Yes, if your mother passed her entire estate to your father, his IHT allowance will be £624 000.

If she passed a percentage of her estate to him, his allowance won't be quite as much.
eg, if she passed 20% of her estate to him, his allowance would be 120% of £312 000.

More info here:
http://www.hmrc.gov.uk/cto/iht/tnrb.htm

5uperfly

My mother passed away recently. She received a payment of 3 times her salary from her employer, to be paid to my father. After all her debts had been paid, this left an amount of £45,000, which she expressed a wish to my father that this was to be split 3 ways between myself and my 2 brothers, leaving us with £15,000 each. But this was never wrote in her will. My father has been told by his solicitor that we will each have to pay at least 40% tax on our amounts of £15,000, is this correct? Leaving each of us with £9,000. This doesn't seem right to me, any advice would be much appreciated, as to whether this solicitor is right.

jem16

Can't answer your question as you don't say what your mother's total estate was. If it was over £312,000 in total then you may be liable to pay the 40% but only your brother and yourself. Anything passing to your father would be free from Inheritance Tax.