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[Football] Inheritance Tax question
- Thread starter Neil
- Start date
Is it PotG?
Thrifty non-licker
Aah, but is it a tax on the DEAD?
It's the value of the whole estate as valued for probate so includes the house. Where do you get 500 000 from?
No a tax on the inheritors
- Aug 7, 2003
- 7,795
IHT is calculated on the value of the estate which includes all property.
Is it PotG?
Thrifty non-licker
Might want to check with [MENTION=1365]Westdene Seagull[/MENTION] on that.
Live by the sea
Well-known member
- Oct 21, 2016
- 4,718
If the parents house is left to the children then the threshold goes up to £500k b4 paying tax providing the whole estate is not worth more than £2 million . Obviously if both parents are alive and the parent who died first leaves it all to the surviving partner then the threshold effectively doubled to £650 k
40% payable there after
40% payable there after
- Apr 5, 2014
- 23,532
Yes. But...
The inheritance allowance may be higher than £325,000. If the house is being left to children for example. Also if the first deceased partner in a marriage didn't use their allowance.
Get a solicitor to do the forms. They will know the rules. But DO NOT get them to the administration. It's junior work and they will give you instructions on what is needed.
I saved about £7000 for what was effectively a working week of admin and tasks that most junior clerks could do.
- Thread starter
- #10
Many thanks
LamieRobertson
Not awoke
Ohh ...I’m willing to inherit and pay tax as long as the latter is less than the former....leave everything to me
If so. Refuse to pay and your body will be jailed !
Everyone has a nil rate band of £325k plus (since three years ago) something called the residence nil rate band which for this year is £175k. If the deceased lived in a house worth at least £175k and passed assets of that value to direct descendants they will have a total of £500k which is taxed at 0%, the balance is taxed at 40%.
If the deceased was married and their spouse died before them and didn’t use any of their nil rate band the figures can be doubled (but the house must have been worth at least £350k).
There are some complications to the above so if you want more details feel free to pm me.
If the deceased was married and their spouse died before them and didn’t use any of their nil rate band the figures can be doubled (but the house must have been worth at least £350k).
There are some complications to the above so if you want more details feel free to pm me.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,302
Sigh .... so hopefully for one final time ..... and using an example ( putting aside clever tax tricks ) .....
Someone dies with say £2m of assets. The IHT is based on those assets / estate / dead persons wealth - i.e. after nil rate deductions the tax is paid on the WHOLE amount - i.e. the dead person effectively pays it. It is paid BEFORE the inheritors get any of it.
Using the argument both of you have put forward would mean that the £2m estate was divided between say 10 people then no IHT would be paid because only "inheritors pay the IHT". Divide it between say three people and each would pay IHT above the nil rate band. In reality it's paid on the total estate and therefore not by the 'inheritors'.
Is it PotG?
Thrifty non-licker
So it's a tax based on the estate value, paid by the inheritors.
Where do the dead come into this again?
No it's paid on the estate on behalf of the deceased. Then the inheritors get the rest.
Is it PotG?
Thrifty non-licker
So not paid by the dead person then?
Covered partially by [MENTION=3711]Driver8[/MENTION] above, but if it helps;
Each person has a NRB of £325,000. Married couples can effectively join their NRBs together to create an allowance of £650,000.
In addition to this, the Main Residence Nil Rate Band was introduced a couple of years ago, which stipulates that if you are leaving your main residence to direct descendants in your Will then you will also qualify for a further £175,000 each (£350,000).
Therefore, for married couples with children who are main beneficiaries of the will, in most cases you will have a total allowance of effectively £1million.
There are a few caveats and exceptions but that is the broad guidelines.
Feel free to PM if I can help any further - I work as an IFA.
Each person has a NRB of £325,000. Married couples can effectively join their NRBs together to create an allowance of £650,000.
In addition to this, the Main Residence Nil Rate Band was introduced a couple of years ago, which stipulates that if you are leaving your main residence to direct descendants in your Will then you will also qualify for a further £175,000 each (£350,000).
Therefore, for married couples with children who are main beneficiaries of the will, in most cases you will have a total allowance of effectively £1million.
There are a few caveats and exceptions but that is the broad guidelines.
Feel free to PM if I can help any further - I work as an IFA.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,302
it is traditional for someone to have died for IHT to apply.