How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13937
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I took out a loan of £50,000.00 using my house as collateral

Resolved Question:

I took out a loan of £50,000.00 using my house as collateral back in 2005 . The interest on that loan now brings the total sum now to £95,000.00 . My house is now valued at £500,000.00 . I have very little other savings . What is the sum that my estate would have to pay " inheritance tax " on please ?
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question. MY name is XXXXX XXXXX I am one of the UK tax experts here on Just Answer.

At face value your estate would be considered worth £405,000 and as the first £325,000 is exempt - you would have a balance of £80,000 to be considered at 40% = £32,000 Inheritance tax due

This does not take into account other savings, debts or whether you are a second spouse (having been widowed) where there might be unused Inheritance tax from your spouses estate.

Thanks

Sam
Sam and 2 other Tax Specialists are ready to help you