Inheritance Tax Threshold

Elsie68

Hi, I am dealing with my fathers estate following his recent death.  He lived rent free with his partner, but owned a property that was let to tenants.  I am the only beneficiary.  Given that his rental property was his only property, would he be entitled to the additional threshold of £500K 

squirrelpie

Did he own it just by himself or with anybody else?

Had he ever lived in it?

p00hsticks

Elsie68 said:

Hi, I am dealing with my fathers estate following his recent death.  He lived rent free with his partner, but owned a property that was let to tenants.  I am the only beneficiary.  Given that his rental property was his only property, would he be entitled to the additional threshold of £500K 

I'm sorry for your loss. 
My understanding is that if your mother died and left everything to your father , then he'd inherit her £325 NRB to add to his - that's a total of £650k.

There is an additional allowance of £175k, also inheritable, for property passed to descendants, which would increase your allowance by another £350k,  but I'm not sure if this applies to all property - did your father ever live in the property ? 

DRS1

In case you are wondering why they ask the question about his living in the house here is what the Revenue say

"The person that died must have owned and lived in the property at some time. A property that they owned but never lived in, such as a buy-to-let, will not qualify for this allowance. "

Also if the estate is a large (over £2mill) one then the RNRB may get tapered so the full £175k would not apply.

Keep_pedalling

DRS1 said:

In case you are wondering why they ask the question about his living in the house here is what the Revenue say

"The person that died must have owned and lived in the property at some time. A property that they owned but never lived in, such as a buy-to-let, will not qualify for this allowance. "

Also if the estate is a large (over £2mill) one then the RNRB may get tapered so the full £175k would not apply.

If they did live there it is important to know when they moved out, if it was before  8 July 2015 then it still can’t be claimed. 

Elsie68

Thank you for all your help.  My dad did not live in the property so it seems that the additional £175K would not apply.