New Inheritance Tax threshold for couples

Legacy_user

Alistair Darling says he will raise it to £600,000 for couples.

How will this work?

Is it only when couples die at the same time or when the surviving spouse eventually dies?

In this case is the surviving spouse not a single person and why should they be treated any differently than those who have never married or indeed those who cohabit

Rikki

Thats what I wondered.

I'm single and if I pasted away tomorrow what are the new limits for me?

Rikki

LOOK HERE

This means that when the second partner dies, inheritance tax will not be charged on the first £600,000 of their estate, provided none of the allowance was used when the first partner died - for example if items were left to children or other family.

noh

There has been no change for unmarried persons.
What has been done is that the existing £300000 allowance is now transferrable between spouses. So the unused portion of the allowance of the first to die is transferred to the surviving spouse.

Nigel

Rikki

noh wrote: »

There has been no change for unmarried persons.
What has been done is that the existing £300000 allowance is now transferrable between spouses. So the unused portion of the allowance of the first to die is transferred to the surviving spouse.

Nigel

:mad: Great so I'd still get clobbered.

noh

Rikki wrote: »

:mad: Great so I'd still get clobbered.

And me as I am single also. But I intend to spend as much as possible to bring my estate to below the threshold. My plan may fail if I die tomorrow but then it won't be me worrying about the tax.
Nigel

m_c_s

noh wrote: »

And me as I am single also. But I intend to spend as much as possible to bring my estate to below the threshold.
Nigel

There are a lot of online dating sites now;) . Or I think the "buy a wife" industry will flourish.:rotfl:

Andy_L

It looks to me as if you can now use the "double allowance" of a discretionary trust without having to go to the time & expense of setting up a trust.

antenna

If the first person of a married couple only has a 100,000 pounds as his or her's half ot the estate.......when the survivor dies they can only use 100,000 pounds to top ut their 300,000 pound inheritance tax allowance...giving them a 400,000 tax free sum...not as you may think 600,000 pounds...............correct me if i am wrong...

System

My mum died in 1999 so does that mean that if my dad dies (hopefully not anytime soon) his estate would have the £600,000 allowance or does it only apply from the date of the budget?

noh

m_c_s wrote: »

There are a lot of online dating sites now;) . Or I think the "buy a wife" industry will flourish.:rotfl:

Yes but what is the less costly option a wife or paying IHT?

Nigel