Inheritance tax query

wookie66

My elderly father is in his eighties and my mother passed away some fifteen years ago.

Does anyone know if my fathers inheritance tax allowance is 325k or 650k as a widower?

tinkerbel

I believe he would get 100% of his allowance (11/12 £325k) and the proportion of any unused allowance of his spouse (ie if she used £0 he would get 100% of £325k on top of his personal allowance) if she used some, depending on when she died (what the allowance was 8' the tax year of death) and how much she used the percentage may decrease.

Hope this helps but hopefully someone else will confirm for you!

Savvy_Sue

As no-one else has pronounced definitively, I'll move this to the Cutting Tax board where we have threads about Inheritance Tax.

xylophone

http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

SeniorSam

When your mother passed away, if she left her estate to your father, he would have two lots of the full allowance (£650,000) offset against his estate on death. If his net estate is worth more than £650,000 then the tax would be 40% of the remainder. Any gifts to charity would come off the estate value before calculation.

Your father can make tax free gifts of £3,000 in each tax year that would not be subject to inheritance tax if he wishes. If the estate would be subject to tax, this may help to reduce the liability. Other gifts are also possible.

Sam

John_Pierpoint

You have to claim some or all of the second allowance, of £325k currently.
What evidence do you have for the tax treatment of the first death, to back up your claim?