Inheritance Tax

[smurfchops]

Under the new laws, am I right in thinking that, if my widowed father dies, any assets over �600,000 is taxable, rather than the previous rate of approx �350,000 ?

[PrinceRainie]

That is my understanding as the allowance between married couples goes back indefinately, therefore, when your mum died, the allowance carries itself forward.
The previous rate was �300,000.
I'm an IFA but I'm still waiting to see all the small print to find out exactly how it will work as far as "backdating" the threshold.

[smurfchops]

Thanks Princerainie, do you know when this comes into effect ? And what do you mean by back dating ? Sorry I'm just a layman when it comes to finance .

[dzug]

It came into effect on 9 October.

Backdating means that what happened (in terms of how much if any of her IHT allowance was used then) when your mother died will be taken into account when determining the allownce for your father's estate,

It's 'up to �600,000' BTW, not necessarily the full amount.