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Clare, Solicitor
Category: Law
Satisfied Customers: 34887
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Morning. in relation to inheritance tax calculations, I am

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morning. in relation to inheritance tax calculations, I am wondering if I can make allowance of the annual gift allowance and carry back allowance prior to the calculation of inheritance tax due. specifically, if property and assets totalled £500k can I deduct £3000 for annual gift allowance and £3000 carry back of the same unused in the previous year and therefore calculate the inheritance tax due based on a figure of £494,000 ?
Assistant: Where are you located? It matters because laws vary by location.
Customer: uk
Assistant: Has anything been filed or reported?
Customer: a calculation and payment has been made in order to apply for probate
Assistant: Anything else you want the solicitor to know before I connect you?
Customer: I do have another query. assuming the estate is left to myself and my two brothers, one of whom wishes to buy the family home valued at say £400,000. would it be correct to say that he would only pay stamp duty on the 2/3rds of the property that he hasn't inherited rather than the recognised value of £400,000 used to calculate inheritance tax

Thank you for your question

My name is ***** ***** I shall do my best to help you

You cannot claim any of the allowances unless you can prove that the gifts were actually made

You are correct - the Stamp Duty is only paid on the amount that your brother pays the Estate for the property

I hope that this is of assistance- please ask if you need further details

Clare and other Law Specialists are ready to help you
Customer: replied 3 months ago.
in respect to the stamp duty query. if we assume the property value is £400k and my brother pays £265k for the balance of the property he doesn't already own, then we agree he pays stamp duty on only the £265k he is acquiring, is that correct.

Yes that is correct