Inheritance Tax Allowance

Mothman

My mother is trying to work out if she has a likely IHT liability but is unsure what her IHT allowance will be. My farther died in 1999 leaving all of his estate to my mother. Is her allowance £325k + £100k for the house or is she also entitled to some of her late husbands allowance?

00ec25

if the whole of father's estate was left to mother and no one else at all then 100% of father's allowance passes over to mother

note it is % not £

that means when mother dies her allowance will be whatever the actual £ allowance is that year, plus 100% of the same figure from father's allowance

based on today's figures that means she has £325 x 2 + the main residence allowance

madgagoo

00ec25 wrote: »

if the whole of father's estate was left to mother and no one else at all then 100% of father's allowance passes over to mother

note it is % not £

that means when mother dies her allowance will be whatever the actual £ allowance is that year, plus 100% of the same figure from father's allowance

based on today's figures that means she has £325 x 2 + the main residence allowance

The main residence NRB only applies if she leaves the house to you (or another direct descendant.)

Keep_pedalling

It's also 2x the residence allowance.

Mothman

Thank you for the replies.

My father died in tax year 1999/10 leaving his entire estate to my mother, I believe the nil rate band at the time was £231,000 . She then did a deed of variation to my brother and myself totalling £50,000 or 21.6% of the then nil rate band. Am I theere correct in calculating my mother’s current total IHT allowance to be as follows ?

Mother’s allowance 1 x £325K = £325,000
Father's unused allowance transferred 1 x £325K x 78.4% = £254,800
Residential Allowance 2 x 100k = £200,000

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[FONT=&quot] Total allowance = £ 779,800

Thanks[/FONT]