inheritance tax annoucement

sanfly

Is this another government con or do i misunderstand the new limit, raised today to £600,000 for married couples.....I thought that between husband and wife there was no inheritance tax to pay anyway!!!

EdInvestor

There isn't a problem on the first death, but unless you go to considerable effort setting up trusts, changing the way you own your home etc, then surviving partner's estate is liable for the full tax when s/he dies.Now that won't be the case, as the surviving spouse's IHT allowance will be doubled.

The losers in this are the army of lawyers and advisors who set up all the trusts, wills, bonds etc to avoid the tax, which will no longer be needed.

roddydogs

So if your just living together.........................or divorced?

margaretclare

You have to be a married couple or in a civil partnership.

It also applies to widows/widowers, so there seems to be some effect retrospectively. Don't know how far back it will go, though.

Margaret

antenna

sanfly wrote: »

Is this another government con or do i misunderstand the new limit, raised today to £600,000 for married couples.....I thought that between husband and wife there was no inheritance tax to pay anyway!!!

Its when the survivor dies,half the capital sum at the time of the first death,if under 300,000 pounds will be tax free on the survivors death.....

EdInvestor

margaretclare wrote: »

It also applies to widows/widowers, so there seems to be some effect retrospectively. Don't know how far back it will go, though.

Margaret

Darling says indefinitely.

EdInvestor

#Pension Credit for older people with a “small pension” of their own up by £5 a week from next April for a single person and by £7.65 for a couple


#Social care budget up to £1.4bn by 2010 to help elderly live independently


#Extra £200 million in 2008 to provide pensioners and disabled people with free, off-peak national bus travel

sanfly

antenna wrote: »

Its when the survivor dies,half the capital sum at the time of the first death,if under 300,000 pounds will be tax free on the survivors death.....

Just so i understand this, using married couple as example....on first death if assets amount to £600k = £300k each, then on survivors death IHT allowance = £300k + £300k from first death = total allowance of £600k on survivors death....Is that it??

alanobrien

sanfly wrote: »

Just so i understand this, using married couple as example....on first death if assets amount to £600k = £300k each, then on survivors death IHT allowance = £300k + £300k from first death = total allowance of £600k on survivors death....Is that it??

Yes, in effect married couples are allowed to transfer the allowance between them.

seven-day-weekend

Excellent news for us, we were borderline with the £300k but this announcement will taske us out of IHT liability altogether.

56cheffy

So how does this affect someone like me...widowed for 13 years and still single, living with my son?

Do I get my late wifes allowance?