IHT Question - When was NRB introduced

[winshent]

Hi

I am wondering if NRB can be applied to my recent inheritance.

My Mother and Father bought their home in 1973. My Mother died in 1977. My Father and his brother continued to live in the property.

In 2008 the house was split 3 ways with equal share between my Father, Uncle and myself. He did not pay us rent.

My Father recently passed in July 2017. Therefore, my Uncle and myself have inherited my fathers share and are now 50% equal owners.

The house is worth approx 400k. Minimal savings of around 5k

Was there a date when NRB was introduced? Does the estate qualify for the 650k IHT allowance?

[Lee Young]

Did you live in the property between 2008 and when your father passed away?

[winshent]

I lived in the property for 1 year.

My uncle continued to live there and still does. From what I have recently read since my initial from the government website, He should not have to pay IHT?

https://www.gov.uk/inheritance-tax/passing-on-home

If this is correct, how does that affect my IHT ?

[Lee Young]

Because you do not live there your father will own one third of the property and be deemed to own the third actually owned by you (because of the gift with reservation of benefit rules). The third given to your uncle is outside your father's estate because he survived the gift by more than seven years and for the entire time he shared occupation of the house with your father.

On your figures there should be no IHT to pay.

[winshent]

Thanks very much for your help Lee.