Inheritance tax, is it always black and white

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prestige1964

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Myself and my husband have lived in my Mother inlaws house with her for 15 years, we do not own another property, the house will be left to my husband and his brother,and as the law stands you do not have to pay inheritance tax if you continue to live in the property 6 years after, can someone tell me would we have to pay the tax in this case, the brother does not mind waiting the 6 years if it means we dont have to pay, even if he does, he owns another property.
 
What sort of value are you putting on the house? Children are entitled to inherit c.460K (lifetime) from parents - so the inheritance would need to be over 900k before you'd be talking tax anyway.

Insofar as dwellinghouse relief is concerned you need to be living there before inheritance (can't remember the length of time off the top of head) and own no other house to qualify. So bro in law won't qualify tho yr husband might.
 
Thanks for your reply, it could be a good bit over, what I want to know is it possible for my brother in law to pay inheritance tax on his half of the sale and not us,
 
The thresholds for children are aprox 540,000 each this year. Inheritance tax is paid by individuals, your husband and his brother will be taxed on the value of their inheritance. You husband may be able to claim dwellinghouse exemption but the period during which he has occupied the property at the same time as his mother will not count towards the three year period unless she has needed his care due to old age or infirmity. Over 65 is considered old age. You could sell the house immediately after inheriting it and the relief would not be clawed back provided you invested the proceeds in another dwelling. Get professional advice
 
Thanks, I do intend to get professional advice, but my brother in law who is an accountant thinks we will have to pay inheritance tax, just looking for some advice or information before we go to our solicitor, anyone have experience of this kind of situation
 
If you google CAT 10 - Revenue - you'll get the very precise guidelines - pretty much as set out by ramble.

mf
 
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