Inheritance Tax

[ASB]

I did the calc and my IHT would be around £170K.

Have you done any planning?

When I last reviewed wills before doing any specific planning potential liability after deaths of both self and spouse was in the order of rather a lot. After adjusting ownership of assets and insurance policys and relevant gifts on death and a few other things that came down to about a quarter of it (but uncle Gordon has stymied that a little now). Depends on the ages of any kids etc but it is often well worth spending the few hundred it will cost.

[ASB]

I'm sure there's no great haste attached to that change.

It was announced in the last budget.

Predicatbly though it all seems to have gone very quiet about the implementation details.

[John Galt]

Gordon Brown reminds me of a hyena - complete scavenger that laughs while he's ripping your throat out

[Lucifer Box]

It was announced in the last budget.

Predicatbly though it all seems to have gone very quiet about the implementation details.

No great surprise there. Not charging interest from the moment the owner of the estate carks it would be tantamount to a tax cut. Likewise allowing people to use the estate to pay the tax due would be an unprecedented attack on the finance industry.

To be quietly forgotten after a bit of backroom lobbying by the loans industry methinks.

[wendigo100]

If it's the same case as I heard, the surviving sister would have to pay 40% of the figure over the £285k on half the house. I think the house is worth about £800k so this means about £46k in tax which, being elderly, they won't have the income to pay or be able to take out a mortgage, so will have to sell the house. Mind you, the survivor would then have £756k left to buy a new house. It would be the same situation if they had separate £400k houses next door to each other.

If they're successful, then I don't see why the parent-child inheritance path shouldn't also be free of inheritance tax.

How did you calculate 46K? On an 800K house I make it nearer £206K!

[ChimpMaster]

Why not plan ahead and deal out your assets to your siblings more than 7 years before your death. Therefore this counts as a gift and is not eaten up by IHT.

Yes of course you can't plan 7 years before your death but the sooner you make the transfer of funds/assets the greater the likelihood of exceeding this term.

[oraclesmith]

How did you calculate 46K? On an 800K house I make it nearer £206K!

They actually own half the house each, so the surviving sister inherits only half, to add to the half they already own. The inheritance is £400k. If the survivor sells the whole house to pay the inheritance tax bill, though, they might have to pay CGT.

[wendigo100]

They actually own half the house each, so the surviving sister inherits only half, to add to the half they already own. The inheritance is £400k. If the survivor sells the whole house to pay the inheritance tax bill, though, they might have to pay CGT.

OK, I'm with you now.

[Lucifer Box]

If the survivor sells the whole house to pay the inheritance tax bill, though, they might have to pay CGT.

Although as has already been noted, this is not allowable as a matter of law.

[_V_]

Why not plan ahead and deal out your assets to your siblings more than 7 years before your death. Therefore this counts as a gift and is not eaten up by IHT.

Yes of course you can't plan 7 years before your death but the sooner you make the transfer of funds/assets the greater the likelihood of exceeding this term.

Yes great. I'll give my home to my children now shall I? I'm sure an 11 yr old will be pleased.