Iht on property

Ciprico

If someone had to sell their property to pay for care fees, then say died a year later, would they have lost their 175k property iht allowance...as they held no property on death

If their partner had died several years earlier, so they held  2 x 175k iht property allowance, would both be lost if property was sold before the second death...?

DE_612183

Are yous aying that they sold their property for say £1M but only used £400k on care fees so there would be £600k left as part of the estate?

Keep_pedalling

Ciprico said:

If someone had to sell their property to pay for care fees, then say died a year later, would they have lost their 175k property iht allowance...as they held no property on death

No, that would be covered by the downsizing rule

If their partner had died several years earlier, so they held  2 x 175k iht property allowance, would both be lost if property was sold before the second death...?

If by partner you mean a spouse or civil partner then no the transferable NRB and residential NRB would still be available. If they were not married they would never have been available. 

Aretnap

Money derived from a property sale remains eligible for the property allowance (nil rate band), even though it is no longer tied up in property, as detailed here.

https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold

It's called the downsizing rule as the main train for it is to avoid creating a perverse incentive for elderly people to keep occupying a much larger home than they need, but it also applies if the home is sold and no new one is bought.