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Passing on IHT allowance to spouse

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geeforce_2
geeforce_2 Posts: 7 Forumite
Part of the Furniture First Post Combo Breaker
in Deaths, funerals & probate
My dad died 10 years ago so left house & savings to my mum. Am I right that my dad’s tax free allowance of £325k passed to my mum automatically because none of it was used. So if my mum died, she can leave up to £650k without IHT being due?

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  • msb1234
    msb1234 Posts: 613 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Nearly - it’s actually £1mil. Your dad has am allowance of £375K plus if the house went to your mum another £125K making £500k, same for her if she passed the house to one of her children.
  • Emmia
    Emmia Posts: 5,664 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 3 March at 7:51PM
    Were your parents married or in a civil partnership?

    There are additional allowances for passing inheritance to children - so a £1million estate can be IHT free.
  • geeforce_2
    geeforce_2 Posts: 7 Forumite
    Part of the Furniture First Post Combo Breaker
    They were married.
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