Inhertance tax threholds

Spikeroads

My estate will have an inhertance tax allowance of £325K plus another £325K from my late wifes unused allowance .I have sold my house to live with my daughter, can I still claim the additional £175K  residential IHT for both my estate (even though I have sold my house) and from my my late wifes estate making a total inheritance tax allowance of £1000000 is this correct .

Keep_pedalling

To be precise you won’t be able to claim it, as you will be dead, but your executor will be able to claim both RNRBs, so yes, your estate will have a total exemption of £1M under the current rules.

theoretica

Your executors can only claim the lesser of the 2x175 = £350k  or the value of the house - you can't claim the full allowance if the house was only worth 150k.

Spikeroads

theoretica said:

Your executors can only claim the lesser of the 2x175 = £350k  or the value of the house - you can't claim the full allowance if the house was only worth 150k.

I do not quite understand your reply ;
My house sold for well in excess of the £650K which is the combined IHT allowance. So does my estate  get the additional 175k RNB plus a further 175K RNB from my late wife's estate making a total IHT threshold of £1000,000