This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Does my period of residence entitle me to any tax relief?
My mother is now 94 and still Iives in the same house that was bought by my late father in 1947. I also lived in this house from my birth in 1954 until I married and moved out in 1980. Can I claim any inheritance tax (IHT) relief as it was my only residence for 26 years? Also, as myself and my daughter are the only surviving relatives, how can we mitigate the IHT bill? 

Arthur Weller replies: 
Unfortunately, the period you lived in the house, from 1954 until 1980, doesn't count, because the house didn't belong to you then. However quite possibly there may be not much, or even no IHT to be paid when your mother passes away. This is because maybe your mother inherited the IHT ‘nil rate band’ from your father when he died, if he left everything to your mother. Additionally, there are ‘residence nil rate band’ rules increasing the IHT nil rate band when the asset passing on death to the descendants of the deceased is the house that the deceased lived in. 

This question was first printed in Tax Insider in May 2018.

Tax Insider Lite

FREE tax strategies delivered to your inbox every month.

  • By clicking on the button below you agree to the terms & conditions and the privacy notice of the website.
  • Subscribe for FREE