inheritance tax

tonto521

Hi
My mum died in 2016 and we have inherited the house and are due to pay a hefty inheritance tax bill with the remains split between the family beneficiaries. I have lived in the property for over 10 years, helping mum out in her last years and do not own another property, Do I still have to pay the full inheritance tax amount or is there any exemption as in ireland the Dwelling House Relief for example. I am 61.
Thanks

Tom99

[FONT=Verdana, sans-serif]The full amount of IHT is due 6 mths after death but you can pay the amount which relates to property in 10 yearly instalments starting with the 1st instalment 6 mths after death.[/FONT]
[FONT=Verdana, sans-serif]You pay interest on any tax paid after the 1st 6 mths including the future instalments.[/FONT]
[FONT=Verdana, sans-serif]You normally elect to pay by instalments when you 1st fill in the IHT forms so I am not sure what the process to apply later is.[/FONT]
[FONT=Verdana, sans-serif]If you have not yet paid any IHT you are at least 18 mths overdue with the 1st instalment, not sure if there is a penalty for that.[/FONT]
[FONT=Verdana, sans-serif]If you later sell the property the balance of IHT outstanding becomes payable immediately, you can't continue with the instalments.[/FONT]

xylophone

Do I still have to pay the full inheritance tax amount or is there any exemption as in ireland the Dwelling House Relief for example. I am 61

You are in the Republic?

Is this relevant?

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx

tonto521

We are in UK and are paying IHT in installments but were just wondering if there was any type of exemption for living in the home at 61 and looking after mum before she died. I saw Ireland have a dwelling relief exemption and wondered whether we had anything similar in UK?

Flugelhorn

Presume you have used up your father's IHT allowance as well ?

00ec25

tonto521 wrote: »

We are in UK and are paying IHT in installments but were just wondering if there was any type of exemption for living in the home at 61 and looking after mum before she died. I saw Ireland have a dwelling relief exemption and wondered whether we had anything similar in UK?

the answer is no there is not

getmore4less

There is now if they had managed to survive to April 2017...

kidmugsy

tonto521 wrote: »

I have lived in the property for over 10 years, helping mum out in her last years and do not own another property

I'm no expert but have a recollection that there was a special deal when a child had been a living-in carer. Is this a thing of the past?

tonto521

Thank you. Yes we did use up fathers IHT allowance. Do we also have to pay capital gains tax once the house sells?

xylophone

https://freemanharris.co.uk/tax-implications-inheriting-gifting-property/

https://www.enterprisetax.co.uk/capital-gains-tax-on-inherited-property/

Linton

tonto521 wrote: »

Thank you. Yes we did use up fathers IHT allowance. Do we also have to pay capital gains tax once the house sells?

Yes but only on the difference between the value at death and the value when sold which should be pretty small. And you will each have your CGT allowance. So normally no CGT is paid.