Inheritance tax, remarried parent

needabed

1999 mum died and left half house to dad and half between 3 kids, I estimate whole house was worth £200k at that time.

2008 dad remarried a Brazilian lady.

2015 dad has died, but doesn't want wife to get anything as he bought her a house in Brazil and left her a widows pension. We believe she will leave without a fuss.

Dad's will left his half of house (now worth £700k, his half £350k) and £300k in cash as shares/savings to 3 kids.

From my understanding £325k is tax free (nil rate band), but can we use mum's allowance too? How much would it be? Or has that gone because of the remarriage?

Keep_pedalling

The other tax issue you need to be aware of is capital gains tax, as each sibling has a gain of around £80,000 the majority of which is taxable.once you have sold the property.

needabed

Thanks for help. Other siblings selling to me their shares. Would that be taxed as capital gains?

Keep_pedalling

needabed wrote: »

Thanks for help. Other siblings selling to me their shares. Would that be taxed as capital gains?

Yes, your siblings will both have to CGT to pay. How much depends on their other income.

CLAPTON

needabed wrote: »

Thanks for help. Other siblings selling to me their shares. Would that be taxed as capital gains?

there will be no cgt on their share from dad (at time of death), but there will be cgt payable on the share from mum ie. from their share of value at inheritance to current price.

needabed

Having read some more articles about IHT issues our father should of been paying us rent for the other half of the house. Can we get that from the estate backdated? Although we would pay income tax at 20% that would be better than 40%?

getmore4less

Was their a life interest to your father on your mother death for the part she gave to you/siblings?