Inheritance tax reform

Bf109

Last year, Gordo mentioned raising the IHTax threshold to £700,000 "for couples" whatever that means...

So what does the proposed IHTax reform actually mean in this case

- Mrs GreatBf109 dies in 1975 or thereabouts
- Mr GreatBf109 is still going but getting wobbly

Would Mr & MrsBf109 snr. only have to pay IHTax at £700,000 or is that not the way it works? How does it work, in fact. Je suis tres baffled and would like to set their minds at ease if possible.

Thanks.

merlinthehappypig

I pressed the wrong buttom so you got a free thanks!

I think the limit is £600000, not £700000. I can't find any reference to £700000 on the net.

As far as I can tell the new limit is backdated as long as the couple were married when one of them died, regardless of how long ago it was. My wife's aunt took some professional advice - her husband died 10 years ago - and she was told that she now has a £600000 limit before IHT kicks in..

Jonbvn

Sorry but the limit is £600k for couples, which is backdated without limit (unless deceased).

TBH, this was somewhat meaningless, since most people in the IHT bracket were already getting the same tax-relief via trusts.

Bf109

merlinthehappypig wrote: »

I pressed the wrong buttom so you got a free thanks!

I think the limit is £600000, not £700000. I can't find any reference to £700000 on the net.

As far as I can tell the new limit is backdated as long as the couple were married when one of them died, regardless of how long ago it was. My wife's aunt took some professional advice - her husband died 10 years ago - and she was told that she now has a £600000 limit before IHT kicks in..

Not to worry, I thanked you back to restore the yin-yang. The cosmos can rest easy.....:D

True, its £600k. It rises to £700k in 2010, supposedly.