A quick check on Inheritance Tax understanding

[RoseBatton]

This will most likely be a very basic question but I just wanted to double check my findings before I move on accepting it as I find it..

If there is more than one beneficiary mentioned in a will, and those beneficiaries are all children of the deceased, does the inheritance tax introduction still start at £325k and not £425k. Is that correct? So for instance three daughters inheriting £350k from their mother in total, would still have to pay 40% on £25k

I bring this up as on gov.uk website it says, 'If you give away your home to your children or grandchildren, your threshold will increase to £425,000' now in that £350k I mentioned, a house has been included which obviously helps make the figure what it is. Which might it be in my/our case, the £325k or the £425?

Many thanks

[AnthonyR]

The basic Nil Rate Band that everyone gets is £325,000.

On top of that a person may qualify for up to a further £100,000 Residence Nil Rate Band (RNRB) if they leave their home to their children (or grandchildren). If they have downsized or sold (moving into care etc) if they leave the sum resulting from sale or downsizing to their children this will also qualify.

So if the family home (or proceeds) is left to children/grandchildren (assuming it's worth more than £100,000) then the total nil rate band will be £425,000, if not then £325,000.

The other question to look at is if there was a transferable nil rate band available from a spouse which may help the situation.