How to make the most of unused inheritance tax allowance
By Kirsten Hastings, 15 Aug 17
The UK tax office has recently updated its rules for transferring any unused portion of basic and additional IHT thresholds when the first person in a marriage or civil partnership dies.
Philip died in 2015 and left his entire estate to his wife. This was before the additional threshold was available.
So, when he died, the additional threshold could not have been used. That means 100% is available to transfer to his wife’s estate.
His wife dies on 30 July 2019 and leaves all her estate, including a home worth £400,000, to her daughter.
Having died in the tax year 2019/20, the maximum available additional threshold is £150,000.
Her executor makes a claim to transfer the unused additional threshold from Philip’s estate.
So, the total available additional threshold for Philip’s wife’s estate will be £300,000 (£150,000 + (transfer of 100% x £150,000)).
Click through to read about transferring the additional threshold…
Tags: IHT
