Inheritance Tax allowance on property valued at 1000k GBP

[david66]

Hi,

If both parents have pass away in quick succession and their home is valued at 1000k GBP, how is IHT calculated if two direct descendants are the sole beneficiaries and neither parent has used any of their IHT allowance?

Thanks for any advice,

L

[ben_power]

Hi David.

Nil rate band is £325,000 (each) and they also benefit from a property allowance of £175,000 (each). Total IHT allowance £500,000 each or £1,000,000 jointly. Anything above this may be liable to IHT at 40%.

[david66]

Many thanks for your reply.