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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15976
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If your property is held by two other people besides the original

Customer Question

If your property is held by two other people besides the original owner, i.e. as Tenants in Common, when the original owner dies, does her property have to pay inheritance on the total value of the property or just a proportion of it and not the whole cost as it would be if it was just own singly? I have been onto HMRC but the do not seem to give me a sensible answer, [email protected] thanks for your help.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

The estate of the part-owner who passed away should inlcude the value of their share of the property only, for Inheritance Tax purposes. Tenants in Common own a defined share of a property as you can read here.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.

Many thanks but does the size of the estate have any bearing on [email protected]

Expert:  TonyTax replied 3 years ago.
If the estate of the deceased including the value of their share of the property and the value of any gifts made by them in the seven years before death is no more than £325,000, there will be no Inheritance Tax to pay.

If the deceased was a widow or a widower, their estate may be able to claim the unused part of their deceased spouse's/civil partner's Inheritance Tax nil-rate band. Look here for information on that.