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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4195
Experience:  FCCA FCMA CGMA ACIS
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My mother and I bought a house jointly 15 years ago which we

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My mother and I bought a house jointly 15 years ago which we have lived in ever since. It is now worth 2 million. My mother is very ill and will probably not survive a year. I understood that on her death that the house would pass to me as we own it jointly and I would not have to pay any death taxes. Is that right? I am not married, and my other only has one other child from a previous marraige. The will divides up the assets 50:50.

Hello,I am Keith, one of the experts on Just Answer, and pleased to be bale to help you with your question.

Well, only partly; on decease all your mother's assets will be aggregated for Inheritance Tax (IHT) and anything over 325K taxed at 40% flat rate. Assets may have to be sold by executors or administrators of your mother's estate to meet the tax before the residue can be distributed. Frankly, be prepared to move. Of course it is only your mother's half share which will be exposed to IHT.

There is one loophole. If your mother resided in the house as he sole or main domestic residence also then Private Residence Relief (PRR) would apple which relieves CGT at 100%.

I am so sorry to have to rain on your parade.

bigduckontax and other UK Tax Specialists are ready to help you

Thank you for your support.

And your kind bonus.