Tax on estate Interest

dzug1

John_Pierpoint wrote: »

You have to remember that mum died before Gordon Brown brought in the transferable nil rate band, when Cameron proposed to raise the nil rate band to £1,000,000 :rotfl:.
Back in those days the standard advice was to leave the nil rate band to the kids if the widow/widower could afford to survive on what was left. If the survivor needed the money, then the nil rate band could be left to a discretionary trust and lent back to the survivor.

Yup - but OP does say that savings, etc, were 'negligible'

jmsuch

Thanks, I feel really out of my depth here. John P hit the nail on the head. there was and is a loss of love. After mum died in June 2005 a legal document was drawn up allowing dad to remain until his death. mums half of the estate (Tenants in common) was put on trust ( a charge put on the house)? and within the ducument the trustees were able to charge BOE base rate on that element, debt, call it what you will until the charge was called in. So if we go back to my earlier message my question remains will we treat the interest on the charge (26k) as income and as such have tax at appropriater band or are there allowances etc over the last eight years which can be adopted to minimise the liability. Even with Mums assets the total amount remains well below the £275k threshold. Sorry just found out that we have an equitable charge on the estate.