Do you still pay IHT on a house you aren't going to sell?

Danger_Mouse

Hi,
The question is the title really. Myself and my brother have inherited our late uncle's estate and the whole value is above IHT threshold. I'm 99% sure the answer is yes but still we do pay the full IHT if we don't sell the house?
I believe you can pay in yearly installments though? 

xylophone

Are you and your brother the executors of the estate?
Regarding IHT, it is calculated on the value of the deceased's estate after  liabilities such as paying for a funeral, meeting bills and repaying the debts of the deceased. 

If that value is above the nil rate band then IHT is due and payable, regardless of whether or not the house included in the estate is sold.

See https://www.gov.uk/paying-inheritance-tax

https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-inheritance-tax

Keep_pedalling

You can pay by instalments, but why would you want to hold on to the house. Becoming joint landlords should not be undertaken lightly and can lead to serious problems down the line when one of you wants or needs to get out of the ownership. Do you want the hassle of dealing with bad tenants, tax returns, annual safety checks and paying for repairs?

Danger_Mouse

Keep_pedalling said:

You can pay by instalments, but why would you want to hold on to the house. Becoming joint landlords should not be undertaken lightly and can lead to serious problems down the line when one of you wants or needs to get out of the ownership. Do you want the hassle of dealing with bad tenants, tax returns, annual safety checks and paying for repairs?

The house has no mortgage and is in a very desirable area but yeah I hear you. I am interested in purchasing a rental but was In two minds whether this is a great opportunity now (due to no mortgage and area of my uncle's house). However, you do make a good point about when we would actually sell further down the line. This is my main concern and will probably mean we just end up selling the property