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Reader Question:
My dad has left me his house worth 200k, will I have to pay inheritance tax? How much?
Kind regards.
My response:
Inheritance Tax is only owed if the value of your father’s estate exceeds the Inheritance Tax threshold (£325,000 in 2012-13 tax year). If it is then inheritance tax is applicable at a rate of 40% on the excess over the threshold.
Usually any tax liability is paid by the executor or personal representative from the deceased’s estate. So the recipient does not normally have to pay inheritance tax unless the executors can’t pay any inheritance tax liability due.
For more information here is a link to HMRC’s official guidance on ‘who pays inheritance tax’ as well as details on passing property on to children.
I hope that helps
Best Wishes
Damien
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Damien many thanks for your help.
Kind regards
Carl