Inheritance tax

voip03

HI
I am in the process of calculating inheritance tax. My uncle left an estate, valued at £720,000. There are three beneficiaries, two are me and my brother (his nephews) and the other is my late uncle's brother. I am completely confused with the inheritance tax allowance.
I have a few questions:
1. Is the inheritance tax allowance £325,000 or is it £475,000
2. Is this allowance per beneficiary or a one-off allowance for the whole estate.


Thank you,


Jay

getmore4less

Are you the executor?

Have you read the notes that come with the IHT forms?

Have you read up on how nil raye bads work?
(there are 2 and they have different rules)

voip03

Thank you for your reply


Yes, I am one of two executors.


I am in the process of reading the IHT forms but my head is completely spinning


About nil raye bads - I have no clue at all, could you possibly give me more guidance?

davidmcn

If you're this confused by the basics I hope you're seeking professional advice (or that your fellow executor understands things better).

voip03

Could you let me know if the tax allowance is per person or as a whole?


Thanks.

steampowered

The allowance is £325,000.

You might be able to add on an extra £150,000 if part of the value of the estate is your uncle's main residence but you need to read the detail of the rules around that.

It is per estate. Not per person.

If your uncle's spouse pre-deceased him and left him her assets, it may be that his estate will benefit from her nil-rate band.

There is more detail than all of that ... it might be worth getting a wee bit of professional help with this.

[Deleted User]

Hi,

voip03 wrote: »

About nil raye bads - I have no clue at all, could you possibly give me more guidance?

sorry, can't help with your query, but think the red bits should be 'nil rate bands'

mrschaucer

I doubt if the residence nil rate band is available as the beneficiaries do not appear to be direct descendants.
https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band#direct-decs

voip03

Thank you for your quick response.


My late uncle was the main resident.


My late uncle and aunt were not married, but the property was in both names. After my late aunt passed away in 2018, he became the sole owner.


Could you please advise me on how the nil-rate band works.


Thanks.

00ec25

voip03 wrote: »

My late uncle was the main resident. not particularly relevant

My late uncle and aunt were not married, but the property was in both names. After my late aunt passed away in 2018, he became the sole owner. was the property a joint tenant or tenants in common?
did she die intestate?

Could you please advise me on how the nil-rate band works.

Thanks.

sorry but you are so out of your depth it would be unwise to answer your questions one by one as you will doubtless get things in the wrong order and make a mess of it

please do a LOT more reading before you go any further.
The questions you are asking are so basic and are clearly explained in the guidance notes and on many websites, please read them

https://www.litrg.org.uk/tax-guides/bereavement/what-nil-rate-band

G_M

I understand that you are confused and seeking advice, however

1) this is a property forum - you'll do better on the deaths forum here

2) Managing an Estate, dealing with Inheritance Tax, and obtaining Probate (three separate things) are all complex, ad it's easy to either make a mistake, or miss out on beneficial actions to reduce tax etc

3) asking ad hoc questions on the internet is not enough - you need to full lear & understand what you are doing. Or pay a solicitor specialising in inheritance matters

4) there is a lot of guidance on the government websites. Read and explore them (see below)

5) there are whole books on how an Executer should deal with an Estate. Either buy one, or borrow free from the library (see below)

https://www.gov.uk/guidance/work-out-what-part-of-your-estate-pays-inheritance-tax

https://www.gov.uk/valuing-estate-of-someone-who-died

https://www.moneyadviceservice.org.uk/en/articles/sorting-out-the-estate-when-there-is-a-will

https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-thresholds-rates-and-who-pays-avrxm3k7kgxw

https://www.amazon.co.uk/Which-Essential-Guides-Administering-Independent/dp/1844900339/ref=sr_1_2?keywords=which%3F+wills+probate&qid=1574613782&sr=8-2


https://www.amazon.co.uk/Practical-Guide-Obtaining-Probate-Revised/dp/1847168663/ref=sr_1_3?keywords=which%3F+wills+probate&qid=1574613959&sr=8-3