ALISTAIR HEYS

Thank you. I noticed that there wasn't a section on the forum for inheritance tax queries, so I thought that capital gains was the closest (hence why it appears in this section). However, I'll give the number a call.

Hello My father has recently passed away, leaving his estate to myself and my brother. As he had been suffering from Alzheimer's Disease, his last couple of years were spent in a private care home. Approximately 18 months ago, my brother sold his main residence, knowing that he would never move back in due to his illness. This is fine as my brother has Power of Attorney over his finances, while I am the executor of his will. The proceeds were paid into one of our father's bank accounts. I realise that inheritance tax will need to be paid on any value of his estate over £325k, but I have been informed by a financial advisor that an extra £175k may be exempt too, as part of the estate constitutes proceeds from the sale of the house. Although the main residence itself would be exempt from IHT, does this apply to the extra £175k if the property is sold before his death? Thank you in advance.