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Where Taxpayers and Advisers Meet

IHT tax and does the 175k come into play?

LaraBeach
Posts:1
Joined:Sun Feb 13, 2022 9:24 pm
IHT tax and does the 175k come into play?

Postby LaraBeach » Sun Feb 13, 2022 9:55 pm

Hello all,
Bit of background required to help you understand the situation.
Dad has died and has left the following in his will to the trustees and executors (his two sons)
House worth between £325k and £335k
Bank account £152k
Life Insurance pay out £24k

Am I correct in thinking the £325k nil band rate comes in to effect followed by £175k residents nil band rate?
I’m being confused by many but I am reading it that the residents £175k comes into effect as the house has been left to the sons in his will.

Can anyone confirm or deny this please?

Thank you in advance

Lara

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: IHT tax and does the 175k come into play?

Postby maths » Mon Feb 14, 2022 5:34 pm

If the house was father's residence and in his will he left it to his two sons then "yes" his estate will be entitled to an RNRB of £175k (assuming house worth at least this amount).

The RNRB is offset against father's estate BEFORE the nil rate band (although in practice this isn't usually a problem).


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