Inheritance Tax Allowance

Oblivion

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?

CLAPTON

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

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.

kidmugsy

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.