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Inheritance tax

sweety
Posts: 171 Forumite


Hi
Bit confused over Inheritance tax, and hoping some kind folk could help me. I have been told that a husband can leave spouse any amount of assets free from Inheritance tax, and vice versa. Does this mean their personal £325k and extra £175k allowances are transferable in total to spouses? On death of second person they could have tax free allowances of £500k (from death of first person) plus £325k of their own, with extra £175k if leaving residence to their children? This could mean tax free allowance of £1 million or £825k if no children involved?
Is this how it works? I fear i may be an executor for an aunt and uncle and want to make sure i pay the ITax correctly.
Thank you.
Bit confused over Inheritance tax, and hoping some kind folk could help me. I have been told that a husband can leave spouse any amount of assets free from Inheritance tax, and vice versa. Does this mean their personal £325k and extra £175k allowances are transferable in total to spouses? On death of second person they could have tax free allowances of £500k (from death of first person) plus £325k of their own, with extra £175k if leaving residence to their children? This could mean tax free allowance of £1 million or £825k if no children involved?
Is this how it works? I fear i may be an executor for an aunt and uncle and want to make sure i pay the ITax correctly.
Thank you.
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Comments
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The NRB will be transferable, the residential NRB could also be transferable, but the later exemptions are any available if they have direct descendants to leave their estate to. If they have never had children then their combined exemptions are £650k rather than £1M.1
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So on death of first, the full £325k is allowed in entirety, regardless of total assets?
on death of second, the total nil rate will be £650k and everything above this is 40%?0 -
sweety said:So on death of first, the full £325k is allowed in entirety, regardless of total assets?
on death of second, the total nil rate will be £650k and everything above this is 40%?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
sweety said:So on death of first, the full £325k is allowed in entirety, regardless of total assets?
on death of second, the total nil rate will be £650k and everything above this is 40%?
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