Is there any inheritance tax to pay?

D2023D2023 Forumite
11 Posts
First Post
Hi, so confused, any help is much appreciated. The estate is worth approximately £875,000 and no will, so intestate. £270,000 plus half of remainder is inherited by spouse, so £572,5000, and £302,500 to children. As the £302,500 is less than the current nil band rate of £325,000 is there no inheritance tax to pay? Or is it 40% of £302,500 as the total estate value is over £325,000? 


  • edited 18 March at 8:12AM
    LintonLinton Forumite
    16K Posts
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    edited 18 March at 8:12AM
    Inheritance passed to spouse is tax free.  This is in addition to the allowance, so no tax is due. The spouse also “inherits” the unused part of the deceased’s £325k allowance.

    Does the estate valuation include all or part of the family home?
  • D2023D2023 Forumite
    11 Posts
    First Post
    Thanks Linton. I didn't realise but you are right, there will be some unused allowance.

    It includes 2 rental properties but not the family home. As there is no tax payable I think we will not have to use IHT435 to claim the Residence Nil Band?
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