Hi,
I was gifted 70% of a rental property valued at £465,000 owned by my dad between three and four years ago. He has now left the further 30% to me in his will. Would someone be able to explain how inheritance tax is worked out, taking into account the Taper Relief which affects the 70%? I have asked my family solicitor who drew up the will and the gift transfer in the first place, but neither he nor his office colleagues are actually sure how it works!
My own uneducated guess is that we take off his £325k IHT allowance, leaving £140k (disregarding any other parts of his estate for now). This £140k is then split into my 70% (98k), which is charged at 32% (with the Taper Relief), and the other 30% (£42k), which is charged at the full 40%, which leaves a bill of £48,160. Am I anywhere close?
Many thanks in advance
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