I'm so nosey, my friend just inherited a house, and the Nazies, sorry, tax office, want 65k pounds...so what..

Question

...was the house deemed to be worth?

Thanks in advance for your answers.

Answer 1

Say you dont get taxed on the first £300,000 (inheritance tax has just gone up i think so this is just a guess

£462,000

Answer 2

Off the top of my head isn't death duty 40%, and the first £312k is free. It also depends if they inherited anything else.

So you might be able to guess that £65k is 40% of the amount it was valued over £312k. If they were the only beneficiary.

Answer 3

Hello.

I'd say to you and friend be even nosier and get yourselves down to the Citizens Advice Bureau for an urgent and immediate consulation. Failing that, a chat with a solicitor who specialises in this may prove very fruitful. After all, why pay more Inheritence Tax than you need?

This needs investigating fast if you can save yourself from £65,000 in taxes by paying £300 in legal fees would in itself be worth doing.

Don't let them jackboot away an inheritence!

Alan L.

Answer 4

You have asked this before and gave me a best answer on it!

The answer is still the same - you cannot find out the value of the house based on the tax paid becasue the tax paid will include all the assets of the estate - cash, shares, inbestments, etc.

Answer 5

IHT is not paid by the recepient it is paid by the estate (i.e. the dead person). So, unless your friend is the only benefactor you cannot calculate the value of the house as other people may have received other assets. Also, there are certain expenses which are deductible from the estate which would upset any backward calculation.

Answer 6

Using last year's figures, the house was valued at £462,500.

(This assumes that the only item in the estate was the house, which is VERY unlikely. What your friend received may only be a fraction of the estate)