Per individual, £650,000 for a married couple/civil partner. Then you're only taxed after that.
So you can get about 3 houses at the uk average price inherited before you pay any tax. Then you pay 40% on the 4th and 5th houses you get given for free.
(PsychoChomp, Wed 25 Apr 2012, 13:41, 2 replies, latest was 14 years ago)

So say a married couple own their assets together, as most people do.
One person dies. The other person doesn't pay inheritance tax because they hold their assets as joint owners.

For the 650k threshold to apply, they'd have to die together. Or am I wrong, here?
( Kroney, Wed 25 Apr 2012, 13:45, Reply)

You're wrong
married partners don't pay any of the tax, and their £350k allowance is passed over to the surviving member.
(PsychoChomp, Wed 25 Apr 2012, 13:46, Reply)

Fair enough.
House prices currently being what they are though, even 650k is still well within middle class territory. My parents own two houses, one of which they rent out. Combined they own half a million pounds-worth of property and they are not unusual in this country.
( Kroney, Wed 25 Apr 2012, 13:48, Reply)

Even if they owned £1million worth of assets
they would only be taxed 14% which is less than VAT, and all costs of sale etc are tax deductable so it would be less.

It's really not an unreasonable tax, it's just sold as one by the very rich.
(PsychoChomp, Wed 25 Apr 2012, 13:52, Reply)

We're not talking about the current rate of IHT though
We're talking about her gay ex-boyfriend's proposal of 90%
( Kroney, Wed 25 Apr 2012, 13:54, Reply)

I'm pretty fucking sure it isn't unless you are extremely clever about how you hold your assets
but I'm willing to be proved wrong, here.
( the mighty badger Aphrodite, on a bar stool, by your side, Wed 25 Apr 2012, 14:00, Reply)

www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm
(PsychoChomp, Wed 25 Apr 2012, 14:08, Reply)

fair enough.
There always used to be massive restrictions on this, I didn't realise the rules had changed. Useful info, cheers.
( the mighty badger Aphrodite, on a bar stool, by your side, Wed 25 Apr 2012, 14:16, Reply)

depends how they hold the estate

( rachelswipe with a fork, Wed 25 Apr 2012, 13:47, Reply)

In reality anyone into those figures will have taken advantage of IHT tapering relief and the estate will pay fuck all

( Light In Chains maker of the ikea sofa, Wed 25 Apr 2012, 13:45, Reply)

correct
you stitch it up with a complex series of trusts and you can avoid paying most of it.

the people who oppose this kind of tactic are generally the people who don't have much to inherit OR don't have kids to leave it to, imho. but am happy to be proven wrong.
( rachelswipe with a fork, Wed 25 Apr 2012, 13:46, Reply)

SOWHYISEVERYONEARGUING!!!!!!

( Light In Chains maker of the ikea sofa, Wed 25 Apr 2012, 13:48, Reply)

And yet for some reason big media owners and tory politicians
have decided that this is AN OUTRAGE and managed to get the public to think it's a totally unreasonable DEATH TAX
(PsychoChomp, Wed 25 Apr 2012, 13:47, Reply)

I don't get that, the fundamentals of IHT haven't changed in some time
I'm morally aghast for no reason
( Light In Chains maker of the ikea sofa, Wed 25 Apr 2012, 13:51, Reply)