Property Iht

[kanwal3017]

My father has written that the property and all his money should go to his son in his will. Will I have to pay inheritance tax on it

[Neveracrossword]

Wasn't your brother mentioned? You had earlier questions which seemed to suggest that there were two of you to inherit.

[Buenchico]

It depends upon the total value of his estate.

Inheritance Tax has to be paid, at the rate of 40%, on that part of an estate which is above the nil rate threshold. That threshold is currently £325,000.

However if your father's wife has pre-deceased him, leaving all of her estate to him, then he effectively inherits her nil rate allowance too, meaning that Inheritance Tax will only have to be paid on the the value of his estate which exceeds £650k.

[Etch]

If you are subject to the UK tax requirements than the guidance is here:
https://www.gov.uk/inheritance-tax
Also see here for information about how passing on a home increases the tax-free threshold:
https://www.gov.uk/inheritance-tax/passing-on-home

[Buenchico]

It won't matter as to whether the will leaves the estate to one person, two people or lots of people. It's the estate that has to pay Inheritance Tax, rather than any individual beneficiaries. So the tax, if any, is deducted before the estate passes to the beneficiaries.

[bobbinwales]

Am confused...if your not the beneficiary why might you have to pay IHT. Its the estate what pays it. Or are you saying his son gets property and money and you get something else (car, jewels, ) ????

[bobbinwales]

crossed posts with Buenchicos