📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Is there any inheritance tax to pay?

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? 

Comments

  • Linton
    Linton Posts: 18,125 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    edited 18 March 2023 at 9:12AM
    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?
  • D2023
    D2023 Posts: 11 Forumite
    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?
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.6K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.6K Work, Benefits & Business
  • 598.3K Mortgages, Homes & Bills
  • 176.7K Life & Family
  • 256.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.