Inheritance tax

Happymorning

• 'This can be boosted to £500,000 if you pass on your main residence to your (biological/foster/step/adopted) children or grandchildren.'
• Martin said the above in his weekly email about inheritance tax. Does it mean if you leave your main residence in your will after your death? Or do you have to pass your main residence to your children while you are still alive?

polar_pig

It means if your children/grandchildren inherit your main residence in your will after your death. The standard nil rate band is £325k, but can add £175k Residence Nil Rate Band making £500k. The £500k can be extended to £1m if these allowances are transferred to your your spouse after your death, or visa versa.

Of course the chancellor could change these figures!

Keep_pedalling

You don’t have to specifically leave you home to them, it can even be claimed if you sell it to move into alternative accommodation. As long as your children get left the bulk of your estate and your house is worth more than £175k (or was when you moved out) then it can be claimed by your executors. 

Olinda99

not even sure that your children have to get left the bulk of your estate...

Savvy_Sue

Also the same limits would also apply if the estate passed via the laws of intestacy (although I'd still recommend a will!)

Keep_pedalling

Olinda99 said:

not even sure that your children have to get left the bulk of your estate...

Actually that is correct, they only need to be left £175k, but usually the children get the bulk of it.