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Where Taxpayers and Advisers Meet

Does inheritance tax need to be paid?

shazzyb86
Posts:3
Joined:Sun Mar 05, 2017 9:15 pm
Does inheritance tax need to be paid?

Postby shazzyb86 » Sun Mar 05, 2017 9:28 pm

Hello, I am very new to this so I apologise if I have come to the wrong place. My grandad died in november & jointly owned his house with my nan (divorced) who lives abroad. My grandad had a will & left his half of the house to my dad. My nan & dad want to sell the house. Probate has been granted & the house valued at £325,000, however does IHT come in to play if my dads half goes over £325,000 or if the whole estate goes over £325,000? Also because the house has been valued at £325,000 for probate, if the estate agents come again & value it more or we get a builder who offers more than £325,000 are we allowed to sell it for more than £325,000 without having to pay IHT? Your advice is much appreciated. Thank you

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Does inheritance tax need to be paid?

Postby AnthonyR » Mon Mar 06, 2017 7:45 pm

First thing you need to check is whether the house was owned as joint tenants or tenants in common. If they were joint tenants your Grandad's share of the property would pass to your Nan on his death, regardless of the will.

Assuming they owned it as tenants in common, his half passing to your father would be worth £162,500 (less ~10% due to joint ownership) at death. Assuming there are no other substantial assets in the estate, this is well below the nil rate band and so would not be subject to IHT. IHT is only paid if the estate (plus any gifts in the past 7 years) exceeds £325,000.

You should have filed all the IHT forms before probate was granted though, so I would assume it was below the nil rate band, but check with the lawyer who assisted on the probate application if you had one.

Your nan should be aware that there could be some CGT on her share depending on how long she has been out of the property. This made more complex by the fact that she is non-resident as the gain would only accrue from April 2015.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

shazzyb86
Posts:3
Joined:Sun Mar 05, 2017 9:15 pm

Re: Does inheritance tax need to be paid?

Postby shazzyb86 » Fri Oct 08, 2021 12:38 am

Hello

shazzyb86
Posts:3
Joined:Sun Mar 05, 2017 9:15 pm

Re: Does inheritance tax need to be paid?

Postby shazzyb86 » Fri Oct 08, 2021 12:39 am

Hello, How can I delete this post?


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