does a wife have to pay inheritance tax on a property left to her by husband?
2007-03-20 02:17:07 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
No, but what happens the wife later dies? She has all the marital assets in her name.
Estate values up to currently £285,000 are free of inheritance tax anything in excess is taxed at 40% although certain reliefs apply.
The husband should make use of his nil-rate band and leave this value (if he has it) in trust for say the children / grandchildren) the excess can be left to the wife also free of tax as it is a transfer to his spouse. This is known as a nil-band trust.
When the wife dies, she will also have her nil-rate band to use, so any value in excess of this will be chargeable. In effect the couple have each made use of 2 x £285,000 nil rate band saving £114,000 (£285,000 x 40%).
Depending on the value of assets, please seek specialist advise.
2007-03-20 22:21:28 · answer #1 · answered by ~cathy~ 1 · 0⤊ 0⤋
When you buy a property with one or more other people you hold the property as joint tenants or tenants in common. where joint tenants, the other person's share automatically passes to the survivor. Tenants in common means that your share in the property can pass to whoever you wish and it recommended that you make a will to bequeath that share. when a property is held as Joint tenants under rules of suvivorship, no inheritance tax payable. It will be payable however when your wife dies. Hope this helps.
2007-03-20 02:24:23 · answer #2 · answered by Sugarlump 3 · 0⤊ 0⤋
confident - until you reside in it for a jointly as until now you sell it. This makes it your important homestead, on which there is not any capital helpful aspects tax. whether you do no longer stay in it until now advertising, you will ought to calculate the capital benefit. At this element you are able to deduct evry penny you have spent on the homestead because of the fact it grew to become yours, so i'm hoping you have been retaining receipts, quite for massive products like refurbishment or extensions, criminal expenditures, community council expenditures for making plans permission or development inspection, maintenance, etc etc
2016-12-18 18:38:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
no, there is a spousal exemption, one of the only exemptions there is. careful of selling the house if you do not live there as you may have to pay capital gains tax on any profit made from the purchase price
see hmrevenue and customs web site for forms
2007-03-22 12:30:50 · answer #4 · answered by Laura H 2 · 0⤊ 0⤋
Yes.
2016-12-12 20:43:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No there is no IHT between married partners.
2007-03-20 02:26:46 · answer #6 · answered by Mark J 5 · 0⤊ 0⤋
No see attached website.
www.inheritance-tax-online.co.uk/Exemptions_&_allowances_inheritance_tax.htm/
2007-03-20 02:24:56 · answer #7 · answered by Brian J 3 · 0⤊ 0⤋
No - not between married couples.
2007-03-20 02:58:50 · answer #8 · answered by tor 4 · 0⤊ 1⤋
She does not in UK
2007-03-23 12:14:28 · answer #9 · answered by Professor 7 · 0⤊ 0⤋