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  • FIRST POST
    • tonto521
    • By tonto521 4th Aug 18, 9:31 PM
    • 5Posts
    • 0Thanks
    tonto521
    inheritance tax
    • #1
    • 4th Aug 18, 9:31 PM
    inheritance tax 4th Aug 18 at 9:31 PM
    Hi
    My mum died in 2016 and we have inherited the house and are due to pay a hefty inheritance tax bill with the remains split between the family beneficiaries. I have lived in the property for over 10 years, helping mum out in her last years and do not own another property, Do I still have to pay the full inheritance tax amount or is there any exemption as in ireland the Dwelling House Relief for example. I am 61.
    Thanks
Page 1
    • Tom99
    • By Tom99 5th Aug 18, 1:01 AM
    • 2,793 Posts
    • 1,918 Thanks
    Tom99
    • #2
    • 5th Aug 18, 1:01 AM
    • #2
    • 5th Aug 18, 1:01 AM
    The full amount of IHT is due 6 mths after death but you can pay the amount which relates to property in 10 yearly instalments starting with the 1st instalment 6 mths after death.
    You pay interest on any tax paid after the 1st 6 mths including the future instalments.
    You normally elect to pay by instalments when you 1st fill in the IHT forms so I am not sure what the process to apply later is.
    If you have not yet paid any IHT you are at least 18 mths overdue with the 1st instalment, not sure if there is a penalty for that.
    If you later sell the property the balance of IHT outstanding becomes payable immediately, you can't continue with the instalments.
    • xylophone
    • By xylophone 5th Aug 18, 7:35 AM
    • 26,923 Posts
    • 16,071 Thanks
    xylophone
    • #3
    • 5th Aug 18, 7:35 AM
    • #3
    • 5th Aug 18, 7:35 AM
    Do I still have to pay the full inheritance tax amount or is there any exemption as in ireland the Dwelling House Relief for example. I am 61
    You are in the Republic?

    Is this relevant?

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx
    • tonto521
    • By tonto521 5th Aug 18, 8:05 AM
    • 5 Posts
    • 0 Thanks
    tonto521
    • #4
    • 5th Aug 18, 8:05 AM
    • #4
    • 5th Aug 18, 8:05 AM
    We are in UK and are paying IHT in installments but were just wondering if there was any type of exemption for living in the home at 61 and looking after mum before she died. I saw Ireland have a dwelling relief exemption and wondered whether we had anything similar in UK?
    • Flugelhorn
    • By Flugelhorn 5th Aug 18, 8:17 AM
    • 999 Posts
    • 1,205 Thanks
    Flugelhorn
    • #5
    • 5th Aug 18, 8:17 AM
    • #5
    • 5th Aug 18, 8:17 AM
    Presume you have used up your father's IHT allowance as well ?
    • 00ec25
    • By 00ec25 5th Aug 18, 9:07 AM
    • 7,089 Posts
    • 6,788 Thanks
    00ec25
    • #6
    • 5th Aug 18, 9:07 AM
    • #6
    • 5th Aug 18, 9:07 AM
    We are in UK and are paying IHT in installments but were just wondering if there was any type of exemption for living in the home at 61 and looking after mum before she died. I saw Ireland have a dwelling relief exemption and wondered whether we had anything similar in UK?
    Originally posted by tonto521
    the answer is no there is not
    • getmore4less
    • By getmore4less 5th Aug 18, 9:18 AM
    • 33,301 Posts
    • 20,115 Thanks
    getmore4less
    • #7
    • 5th Aug 18, 9:18 AM
    • #7
    • 5th Aug 18, 9:18 AM
    There is now if they had managed to survive to April 2017...
    • kidmugsy
    • By kidmugsy 5th Aug 18, 1:22 PM
    • 11,797 Posts
    • 8,307 Thanks
    kidmugsy
    • #8
    • 5th Aug 18, 1:22 PM
    • #8
    • 5th Aug 18, 1:22 PM
    I have lived in the property for over 10 years, helping mum out in her last years and do not own another property
    Originally posted by tonto521
    I'm no expert but have a recollection that there was a special deal when a child had been a living-in carer. Is this a thing of the past?
    Free the dunston one next time too.
    • tonto521
    • By tonto521 5th Aug 18, 4:41 PM
    • 5 Posts
    • 0 Thanks
    tonto521
    • #9
    • 5th Aug 18, 4:41 PM
    • #9
    • 5th Aug 18, 4:41 PM
    Thank you. Yes we did use up fathers IHT allowance. Do we also have to pay capital gains tax once the house sells?
    • xylophone
    • By xylophone 5th Aug 18, 5:55 PM
    • 26,923 Posts
    • 16,071 Thanks
    xylophone
    https://freemanharris.co.uk/tax-implications-inheriting-gifting-property/

    https://www.enterprisetax.co.uk/capital-gains-tax-on-inherited-property/
    • Linton
    • By Linton 5th Aug 18, 6:11 PM
    • 9,833 Posts
    • 10,091 Thanks
    Linton
    Thank you. Yes we did use up fathers IHT allowance. Do we also have to pay capital gains tax once the house sells?
    Originally posted by tonto521

    Yes but only on the difference between the value at death and the value when sold which should be pretty small. And you will each have your CGT allowance. So normally no CGT is paid.
    • Tom99
    • By Tom99 6th Aug 18, 12:23 AM
    • 2,793 Posts
    • 1,918 Thanks
    Tom99
    Thank you. Yes we did use up fathers IHT allowance. Do we also have to pay capital gains tax once the house sells?
    Originally posted by tonto521
    Is the house still in the name of the estate or has it been transferred to the beneficiaries?
    That will make a difference as to who is liable for CGT.
    • tonto521
    • By tonto521 6th Aug 18, 3:17 PM
    • 5 Posts
    • 0 Thanks
    tonto521
    Thank you all for your help. I think the house will sell for less than valued so I guess no CGT and perhaps a rebate on inheritance tax
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