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Would inheritance tax apply if you lived in home address all your life?

advice_please_2 · 2013-04-08 23:34:40

If you've only lived at one permanent address all your life, ie parents home and when the time comes when they aren't about, will you be instructed for inheritance tax. I know someone in this scenario, think the house is paid off already by parents, but they pay little in the way of any up keep or bills ie don't think…

Comments

martindow Posts: 10,594 Forumite

9 April 2013 at 1:35PM

advice_please wrote: »

Apologies.
I can only assume this was passed on to husband
So if the house is worth £360k and it was joint ownership husband and wife 50% each.
So do you meant that total IHT allowance when dad passes away it will be double £325k allowance as includes someone else estate before?

If the nil rate band can be transferred there is no advantage paying to set up tax avoidance measures unless the estate is over £650k.

Here is HMRC's information

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

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