Inheritance tax question

Dottie64

My mother is in a home with savings which we are using to pay the fees. She also has an empty house worth 300k.  I understand that there is a threshold of 500k before inheritance tax kicks in when she dies (325K for assets and 175k for property?) 
if we sell the house now and convert it to cash do we lose the property relief? We don’t want to let the house and don’t want it left empty. 

Also my father died several years ago leaving everything to her, are we able to combine their tax relief? 

If I need to take advice what sort of expert/solicitor should I look for? 

Thank you 

FrugaiMacDugal

Have a read here, scroll down to section 4, might help.

bobster2

Dottie64 said:

if we sell the house now and convert it to cash do we lose the property relief?

Yes - an estate can still make use of the residence nil rate band (RNRB) if the main residence is sold so that someone can move into care. Look up the "downsizing" rules (aka "Qualifying Former Residential Interest" rules).

But bear in mind this is not general "property relief". The RNRB only applies if the value is being left to direct descendants.

It should be possible to transfer your father's unused RNRB (assuming they were married?). But you only be able to use these 2 x RNRB up to the value of the property (i.e. £300k) not 2 x 175k = £350k

Keep_pedalling

As above, yes you would still be able to claim the residential NRB, but If at the time of death your mother’s assets are below £650K it is better to claim the transferable NRB from her husband as that will avoid having to do an IHT return.