This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax implications from a property inheritance

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.

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

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.

Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”