Inheritance tax - who pays when several heirs inherit?

nom_de_plume

Something else to consider is Abatement. If the Will is not carefully worded, any cash in the pot could be used up to pay any IHT due on the property rather than going to their intended recipient..

CalJo99

'Most hated' by those who will have to pay it!

If assets are purchased by income (perhaps stored as savings) on which income tax has already been paid, why should it be taxed again when passing from one person to another?

Yes, liquidating some assets would be financially prudent, but my dilemma is that it is the assets themselves, as themselves, which are 'desirable'. No one in my brother's family can afford to buy me out, or buy my son out if he inherits. 

Agricultural relief may only be claimed, so I understand, if you 'work the land yourself'. It's not designed to allow a passive land-owning landford to avoid IHT on the land. However, just what constitutes 'working the land yourself' is a different question. Does it allow you, say, to own a flock of sheep, graze the land, but employ a shepherd, or do you have to herd the sheep yourself (etc)

Another anomaly in IHT seems to be that if you have, say, a house, and you rent it out either to a permanent tenant, or as a holiday let business, you'll pay IHT on it, but if you use the house, as, say, a wedding venue, or a bed-and-breakfast, then it (should!) be elgible for Business exemption from IHT.  Running a holiday let isn't classed as a 'business' so it seems, but B&B is - because, I believe, the latter requires hands on day-to-day work for guests, whereas holiday lets only need you to clean the place weekly....(that holiday lets require a lot of paperwork and admin seems to pass by the taxman....)