Excepted Estates

Gers

I'm slightly struggling to understand the rules regarding excepted estates so would ask for a bit of clarification.

From https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm06013

Rules about excepted estates: exempt excepted estates. These are estates where there can be no liability to IHT because the gross value of the estate does not exceed £1,000,000 and there is no tax to pay because either spouse or civil partner exemption and/or charity exemption only can be deducted against the assets.

It's the 'and' which bothers me.

My elderly DM is nearing the end of her life and I am trying to prepare as much paperwork as possible beforehand - probably more of a bit of distraction therapy as well as hoping to get through it before more emotional times take over.

I am the executor and only beneficiary of DM's estate. One property which can roughly be valued at £250,000 (heirtable estate) and under £50,000 (moveable estate).

Given the value is under the £1M will this make it an excepted estate even though my father is long deceased? If the above quote had 'or' I would find this easier - maybe I'm being dense!

Thanks

Keep_pedalling

The £1M limit applies where a surviving spouse or charity is the main beneficiary as IHT does not apply to spouses or charities.

Your mother’s estate however should qualify as an excepted estate is its gross value falls below her nil rate band.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/371996/c3_2.pdf

getmore4less

Scotland, beware answers from the English don't always apply

Keep_pedalling

getmore4less wrote: »

Scotland, beware answers from the English don't always apply

Which is why I linked to the notes for completing the confirmation forms

Gers

Keep_pedalling wrote: »

The £1M limit applies where a surviving spouse or charity is the main beneficiary as IHT does not apply to spouses or charities.

Your mother’s estate however should qualify as an excepted estate is its gross value falls below her nil rate band.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/371996/c3_2.pdf

Great answer - many thanks! I appreciate it.

Gers

getmore4less wrote: »

Scotland, beware answers from the English don't always apply

The IHT rules are the same as the myscot.gov website sends out links to the HRMC site where the C1/C2/C3 documents are.

Keep_pedalling wrote: »

Which is why I linked to the notes for completing the confirmation forms

Think the document you linked to is out of date as the small estate limit is now £36,000 and I've found a later document - however I appreciate you taking the time so help advise and reassure me.

Thanks

Gers

Just discovered the RNBR.

VivienneC

Does anyone know if the inheritance rules for a spouse are different if the spouse was born outside the UK?


I can't find clear guidance on this in the many documents I've sifted through.



The spouse in question has been living and working in the UK for over 45 years and is still resident here.

Keep_pedalling

VivienneC wrote: »

Does anyone know if the inheritance rules for a spouse are different if the spouse was born outside the UK?


I can't find clear guidance on this in the many documents I've sifted through.



The spouse in question has been living and working in the UK for over 45 years and is still resident here.

For future reference you really should start a new thread rather than tack a new question on to an old thread, especially as in this case we are talking about 2 separate things.

Place of birth is not important but where you are domiciled is and that can be quite complex.

https://www.charlesrussellspeechlys.com/en/news-and-insights/insights/private-wealth/2016/non-uk-domiciliaries-inheritance-tax-issues-and-opportunities/