Inherritance on property - how work

Mick70

apologies if this has been explained on here many times,  am i right in saying if property left by parents is under £325k valuation then there is NO inheritance tax to pay and you can pass it on to your own children ? 
same query if any cash left ?

what happens if house say £250k and cash £200k
if two sons and one left house (as wants it keeping in family) the other the cash (as they dont want house) , how does inheritance tax work ?

thanks
mick

p00hsticks

Basically, the standard IHT nil rate allowance is £325k - but if one spouse leaves everything to the other, then they also inherit the others allowance, so on the second death the allowance is 2 x £325k = £650k. And on top of that there is an additional allowance of £175k per person if they leave the family home to direct decendants. So a couple leaving everything icluding their home firstly to each other and then to their children or grandchildren has an overall IHT allowance of £1million on the second death.

  

Tax is calculated on the value of the whole estate - that is everything including property, cash, savings, stocks and shares, cars, personal possessions  etc, The one usual exception is pensions, which are usually held in trust and fall outside th estate.

If in th example you give the will leaves everything to be divided equally to both sons (rather than specifically leaving the house to one and everything else to the other) , then by mutial agreement the first son should buy the second one out of the shared property

See the government website here for full explanations and some worked exampes

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