Inheritance Tax - trying to understand it

Sugared-frog

My father died in January this year and I've been slowly trying to sort through his finances. The majority of his estate passes to his wife with the exception of a few small beneficiaries, and some farm land. The farmland in Northern Ireland was left to his 4 children equally. The size of his estate will pass the inheritance tax threshold when you take in the value of the house (London) etc. Will there be any inheritance tax to pay because not everything is going to his wife or will it only have to be paid if I was sorting out my Mum's estate at some point in the future? I have started looking at the IHT400 forms ... though still finding them a bit of a mountain. I'm aware there is a 6 month deadline in July and I'm not sure I'm ready for it.

WaywardDriver

Is farmland not exempt from IHT under certain conditions? As far as I'm aware tax isn't a devolved matter so UK rules apply. Maybe need to consult specialist.

Sugared-frog

I'm not sure the farmland meets the required conditions as it has been let for the last 20+ years on an annual basis though usually to the same person looking at the records. There isn't a habitable building on the land, the building that is there was last occupied about 1935 I believe. The person who manages the land letting each year didn't think it would qualify.

WaywardDriver

Still may be worth looking at Agricultural Relief for Inheritance Tax - GOV.UK (www.gov.uk) and seeking specialist advice.

Keep_pedalling

Sugared-frog said:

I'm not sure the farmland meets the required conditions as it has been let for the last 20+ years on an annual basis though usually to the same person looking at the records. There isn't a habitable building on the land, the building that is there was last occupied about 1935 I believe. The person who manages the land letting each year didn't think it would qualify.

The fact that it is let does not disqualify the land from AR. As long as it is a working farm the relief should apply. I would certainly consider getting some professional help with what sounds a substantial estate.