I always thought if you're property was over £285,000 you paid 40% inheritance tax. I have heard now that sum £125,000 holds some significance. I have tried reading it up but do not understand this technical jargon, can someone please let me know what it means. thanks. x
2006-10-25 01:18:19 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
I am going use the correct term "Real Estate" instead of "Property", as the latter refers to property in general and I am convinced you mean your house. Pardon me if I am wrong.
If your estate, which includes all your assets (real Estate, chattels, stocks and shares, etc.... ) less your liabilities, is over 285K, then you pay tax at 40% on that part of the estate that is over 285K. The first 285K is exempt from any taxes.
The 125K you have referred to is the threshold at which stamp duty is payable on the purchase or transfer of real estate.
2006-10-25 09:04:54 · answer #1 · answered by joechuksy 3 · 1⤊ 0⤋
Are you sure you're not thinking about stamp duty?
No stamp duty is payable on residential properties for transfers less than £125,000.
I've not come across that figure with respect to inheritance tax but perhaps I should read more.
2006-10-25 03:30:55 · answer #2 · answered by tringyokel 6 · 1⤊ 0⤋