Inheritance Tax when second parent dies

My father died 30 years ago, leaving everything to my mother. (They were married). My mother has recently died leaving everything to my brother and me. Her estate, including her house, is worth around £600,000, taking us above the inheritance tax threshold. The internet is not giving me a clear answer - Does my father’s inheritance tax allowance get passed down to us, meaning that our allowance will be £350,000 x 2, so we would pay inheritance tax only above £700,000? (I understand there is an allowance for passing on a property too, but need to understand the inheritance tax issue first.) I

Hi,
The allowance doesnt transfer as this would have been applied at his time of death. you are only due the  £350,000.
Thank you.

Far be it from me to contradict an HMRC response, however I do not believe they have fully understood the question. Unless there are circumstances that I am unaware of that prevent it, a spouse does not incur IHT on anything they inherit from their partner. Additionally they inherit their partners unused allowances. In theory, if the partner left everything to their spouse, their spouse can inherit both their £325,000 nil rate band allowance AND the £175,000 increase that can be applied when passing property to children (including adopted, fostered or stepchildren) or grandchildren AS LONG AS the entire estate is und £2 million. In theory this means that no IHT could be payable if the estate is £1 million or less - as I understand it.

CmdrBond Far be it from me to contradict an HMRC response, however I do not believe they have fully understood the question. I agree entirely with you interpretation of the rules as I have needed to look into this of late with my wife being made executor and PoA for her mother who is now 100 and in not great health. My MiLs husband passed away circa 25 years ago and left his entire estate to her.

I agree with the above, HMRC has not understood the question and the reply from the HMRC is misleading and poor in it's content. Another question could be, assuming a child inherited a house (value £300k) and £300k (cash), total estate of £600k from an already bereaved parent. What & how much tax relief would be applied?

Hi ,
 

Guidance on inheritace tax is at :  How Inheritance Tax works: thresholds, rules and allowances .

Thank you .

Good day, My father died 23 yrs ago. No IHT was due or paid at that time as my mother and wife of my deceased father was joint owner of their home. My question is in the event of my mothers death can my fathers allowance of £325k be transferred to my mothers allowance providing a £650k total allowance despite the fact he died 23yrs ago? I am unable to confirm anywhere if there is a time limit of the first death in relation to the death of the surviving spouse. Thank you

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.