HMRC IHT checker tool query. jointly owned house left to spouse

Dodge1664

Hi, my father owned a house jointly with my mother and died recently. AFAIK, the house ownership passes to the survivor, and no tax is due because of the spouse exemption. Therefore no IHT is due, and the house doesn't need to go through probate. Also my mother wouldn't be liable to CGT in the future, as she occupies the house. So...why does the online IHT checker tool on the HMRC website ask for an estimate of the value of jointly owned UK property? I don't see the relevance of the question. Also if my estimate of the property value turns out to be inaccurate what negative consequences could there be? I can't think of any!  thanks

madbadrob

Im the last person to respind on this subject as its outside my area so hopefully KP or Ras can answer you.  However you say held jointly is that as Tenants in common or as joint tenants where the property is 100 percent owned by the remaining spouse?  That is a crucial question as it will define the answer.  

Rob

Keep_pedalling

The question is there because jointly owned property is not always jointly owned with a spouse or civil partner and therefore is not always coved by spousal exemption. 

Mark_d

As the house in jointly owned, your mother already was an owner of the entire property. So there is no inheritance tax issue in respect of this house.  However there may be liabilities relating to other property (assets) owned by your father which are now passing to your mother.

Dodge1664

madbadrob said:

Im the last person to respind on this subject as its outside my area so hopefully KP or Ras can answer you.  However you say held jointly is that as Tenants in common or as joint tenants where the property is 100 percent owned by the remaining spouse?  That is a crucial question as it will define the answer.  

Rob

Rob, The Land Certificate just has both of my parents listed as proprietors. The Conveyancing document has the magic phrase "joint tenants" buried in the legal waffle. Does that settle it, or do I need to find another document?

Keep_pedalling

How the property is held does not really matter in this case and as spousal exemption and primary residence relief  applies there there will be no consequences if your valuation is not bang on. 

The conveyancy documentation would apply at the time of house purchase but either parent could have changed that at a later date, but that seems unlikely if both of them left their full estate to each other as it would have been pointless. 

If you want confirmation of how it was owned you need to download the LR documents.

https://hmlandregistry.blog.gov.uk/2022/11/02/what-kind-of-joint-ownership-do-i-have/