inheritance tax on property

[dave m]

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

thanks

[tamborine]

£325K...........40% on extra value.

[dave m]

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