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Where Taxpayers and Advisers Meet

Tax implications from a property inheritance

Headteacher
Posts:1
Joined:Sat May 25, 2024 9:03 am
Tax implications from a property inheritance

Postby Headteacher » Sat May 25, 2024 9:04 am

Four siblings inherit their mother's property. One has been living there for some years (call them A). The property is worth £600,000. Siblings B, C and D decide to create Deed of Variation and hand over their part of the inheritance to A. Will A be liable for the entire inheritance tax? Thank you.

pawncob
Posts:5124
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax implications from a property inheritance

Postby pawncob » Mon May 27, 2024 5:36 pm

Any IHT above £500k (£325k+£175k) will be due from the estate. Depending on the wording of the DoV and other assets bequeathed, this may fall on the beneficiary.
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1797
Joined:Fri May 16, 2014 3:47 pm

Re: Tax implications from a property inheritance

Postby AGoodman » Fri Jun 07, 2024 10:12 am

As pawncob says, any inheritance tax will be payable by the estate, not the beneficiaries.

However, if the property is the only asset of the estate, and A wants to keep the property rather than it be sold to pay the tax, A will have to provide the cash to pay the tax.


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