1 min Read
23 May 2012

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

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Reader Question: Do I have to pay inheritance tax on the house my dad left me?

Get an answer to your financial question online 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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