inheritance tax on property

dave m | 19:21 Sat 07th Nov 2009 | Business & Finance

4 Answers

whats the threshold on inheritance tax on property is it 120,000? and what exactly is the threshold?

thanks

I'm trying to get the working for the following loan calculation:

Future of RBS - Please

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tamborine

£325K...........40% on extra value.

dave m

Question Author

so if a house is worth 120k then is ther any tax 2 pay?
cheers

Sandy-Wroe

If someone just inherited a house worth 120K, and nothing else, there would be no tax to pay.

Buenchico

Inheritance Tax (IHT) isn't paid on property, per se. It's paid on the total value of the estate.

So, if the £120,000 house makes up all (or most) of the deceased person's estate, there will be no IHT to pay.

However if the deceased person also had £380,000 in the bank (or in shares, etc), the total value of the estate would be £500,000. The first £325,000 would be exempt from tax. The remaining £175,000 would be taxed at 40%. (i.e. IHT due = £70,000).

More here:
http://www.hmrc.gov.u...eritancetax/index.htm

Chris

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