What would be the Inheritance Tax threshold?

sassyblue

My father recently passed away and left everything equally between myself and my siblings, the will does name us.  I’m the Executor.  

As he owned a property that he leaves to his children does that give us a £500,000 nil rate band for IHT purposes?  I don’t think the will specifically mentions his property, just all his chattels or however they word it.  I am getting the will later this week from the Solicitors but will be doing the Probate application myself.

thanks in advance.

Jeremy535897

See https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

Keep_pedalling

If the property was his his primary residence and it worth more than £175k then yeas the combination of RNRB and NRB gives you an exemption of £500k. You don’t mention his maritable status, but if he was a widower the exemption could be double that.

sassyblue

Dad was divorced. It was his primary residence until he went into a nursing home and then we rented the property out to help pay for his fees.  Will that change anything?

thank you 

Jeremy535897

It means that there is only one RNRB. The renting out does not affect the position though:
"What is a residence
A residence is any property that the deceased lived in as their home while it was included in their estate. It doesn’t have to be their main home, or have been lived in or owned for a minimum period. A property that the deceased owned, but never lived in, such as a buy-to-let property, is not a residence and is not eligible for the RNRB."

From https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978470/IHT435-2021.pdf

sassyblue

Thanks, that’s great