Inheritance Tax - Extra Concession For House

[atalanta]

I understand that, apart from the usual amount of an estate which is exempt from inheritance tax, the value of a family house, or some of its value, is also exempt if the house is left to a descendant. Where do I find the detail of this, and, most important, when did this extra allowance come into force ? If possible, I also need to know when this allowance was announced

[mikey4444]

Atalanta....you may find an answer here :::::

https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax

As I understand it, the value of your house would not be liable to IHT, if it was left to a spouse, but there might possibly be some IHT due, on that spouses future death.

But its a very complicated subject, and I would advise you to get professional advice !

[Old_Geezer]

I'd have thought it unlikely or folk would not consider gifting the house before death and then refusing to die for the necessary number of years. I don't recall exemptions on my parents' house, but their worldly wealth was insufficient to trigger taxes anyway.

[mikey4444]

OG...your last point is significant. IHT remains an irrelevance for most people.

[Peter Pedant]

good answer Mikey

if you are looking for rare grounds for tax reiief on estates then you should be paying for it to be correct

I dont think it is the exemption from capital gains tax if a dependent relative dies IN the house ( that actually you own) - that was around 1970-1995

it could be gifts out of income
https://www.taxinsider.co.uk/1056-How_to_make_exempt_gifts_for_IHT_purposes.html

you havent given us much clue
altho you will probably say: if I knew I wouldnt be posting

[Peter Pedant]

OG - plan A - you have to move out of the house and not vizeet for seven years OR
charge a market rent on which you are taxed

plan A is obvious one - but obvious to the tax man as well hur hur hur

[ubasses]

The new rules came into effect on 6 April this year.
http://www.thisismoney.co.uk/money/mortgageshome/article-3720130/What-know-inheritance-tax-family-home-allowance.html
Scroll down to 'What are the new rules on family homes' and read from there onwards. It is not the full value of the house but the sum is increasing over the next few years.

[themas]

Go here:

https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band


It is a very complex subject.

[Peter Pedant]

thanks Themas

damn - - direct descendants only

thx anyway