Property relief £175,000

[paulnotcluedup]

Hello all,

Firstly, please excuse me if I come across a bit silly. I admit I'm not very knowledgeable about taxation.
I had a bout of ill health a number of years ago and financial planning fell by the wayside.

I own my house outright and it was never jointly owned between me and my wife. I now realise my folly. My estate is over the 2 million to claim property relief (although I see there is some tapering beyond this).

Scenario 1

If I were to gift some cash assets to my wife to reduce my estate to less than 2 million - and I leave the house (main residence) to my daughter - then would this be acceptable to HMRC to claim the £175,000 relief - or would this be seen as an unacceptable way of avoiding paying tax?

Scenario 2

The first scenario is written on the basis that I predecease my wife.
If my wife were to predecease me, she does not own any of the house.

Would it be possible to perhaps gift her half of the house now and then we would each leave our respective 'halves' to our daughter in our wills.
If my wife were to die before me then could the property relief be claimed on her half? And if I died before her then could the property relief be claimed on my half?

I estimate the house to be worth £550k

Many thanks for your advice, Paul

[AGoodman]

1. No, that's perfectly fine except that your widow would have no security in her home and, on your figures, some IHT would be payable on your death.

2. Yes, that's fine.


You should really take proper professional advice on this.