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Inheritance Tax
County1950fan
Posts: 1 Newbie
Clarification please. If the estate is made up of £750,000 cash and £180,000 house, would there be tax to pay as the cash element is over the 2X £325,000 rolled over nil rate exemption.
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Comments
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Probably Yes.
Estate is £750+180k = £930k (less funeral and any other debts)/
NRB £325k x 2 = £650k + £180k Residential Nil Rate (value of house not 2 x £175k that is allowed) = £830k
IHT payable on £100k = £40k from the cash by Executor(s).
Unless of course that cash money is in part from downsizing to £180k home from more expensive house. When, I believe the up to £350k figure might apply.
See https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold#downsizing-to-a-less-valuable-home for the 'horse's mouth' version.
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And that assumes there were direct descendants. OP doesn’t say0
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