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Inheritance tax

Mike James

New member
Jul 20, 2021
6
0
Hi after some clarification please
Dad passed away in 2015 property/investments passed to Mum. I understand that dad's nil rate band of 325k and 175k inherited residence band is passed on to mum, so does this mean mum would have to have over a million pounds in assets before being subject to IHT? Also if we sell mum's flat and put the proceeds into her savings, does mum lose an allowance the main residence nil rate band? Think what I am trying to say is it better to keep the flat or sell? Mum is fortunate to have good amount of savings, self funds and the sale proceeds would gain more interest than a flat sitting empty for several months now, just ensure how much she can have in assets before IHT. Many thanks
 

Melles Belles

Registered User
Jul 4, 2017
774
0
South east
I think the value of the nil rate residence band may depend on what financial year your father died. I’m not certain but it would be a good idea to check this because it increase by £25k each year over a period of several years.
may be get some financial advice from a SOLLA financial advisor who specialised in later life finances.
 

Duggies-girl

Registered User
Sep 6, 2017
2,725
0
Dad died in 2020 and inherited mums nil rate band of 325,000 and also her main residence allowance of 125,000 This meant he could leave 950,000 without paying inheritance tax. He didn't leave that much.

If you sell the house then you may lose the main residence allowance.
 

Susan11

Registered User
Nov 18, 2018
3,768
0
Dad died in 2020 and inherited mums nil rate band of 325,000 and also her main residence allowance of 125,000 This meant he could leave 950,000 without paying inheritance tax. He didn't leave that much.

If you sell the house then you may lose the main residence allowance.
As I understand it if you sell a house to go into care you can still keep the allowance.
 

Susan11

Registered User
Nov 18, 2018
3,768
0
See attached.
 

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