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Inheritance Tax Allowance

A simple question I hope.


My dad died in 2003 leaving absolutely everything to my mum so none of his Inheritance Tax Allowance was used up. She has now died. Am I correct in thinking that if we apply to transfer his unused ITA to her estate it will amount to £325,000 x 2 = £650,000 or will his transfer be capped at whatever value it was back in 2003?
... Dave
Happily retired and enjoying my 14th year of leisure
I am cleverly disguised as a responsible adult.
Bring me sunshine in your smile

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Oblivion wrote: »
    A simple question I hope.


    My dad died in 2003 leaving absolutely everything to my mum so none of his Inheritance Tax Allowance was used up. She has now died. Am I correct in thinking that if we apply to transfer his unused ITA to her estate it will amount to £325,000 x 2 = £650,000 or will his transfer be capped at whatever value it was back in 2003?

    the transfer is the unused percentage at today value
    so yes 325,000 is transferred, giving a total allowance for your mothers estate of 650,000
  • Oblivion
    Oblivion Posts: 20,248 Forumite
    Part of the Furniture 10,000 Posts Photogenic
    CLAPTON wrote: »
    the transfer is the unused percentage at today value
    so yes 325,000 is transferred, giving a total allowance for your mothers estate of 650,000


    Thanks for that confirmation CLAPTON. Good news for a change.
    ... Dave
    Happily retired and enjoying my 14th year of leisure
    I am cleverly disguised as a responsible adult.
    Bring me sunshine in your smile
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Oblivion wrote: »
    Good news for a change.

    Amazingly the man to thank is Gordon Brown, who introduced the transferable allowance in a panic before the General Election he lost.
    Free the dunston one next time too.
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