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Taxes Payable On Estate

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hammerman | 10:16 Tue 20th Aug 2013 | Law
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Simple scenario, both parents die and in their will, they leave everything to their son and daughter and grandaughter (aged 15 but put in trust until she's 20)....1/3 to each. the house is worth £300k and that's about it. Mortgage all paid up.

Would there be any capital gains tax or any other taxes payable after all the small debts were paid off (funeral expenses etc)

Thanks in advance
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Pretty certain Inheritance Tax doesn't kick in until the estate's worth £355k, and then you only pay on the amount above that figure.
£325K

http://www.hmrc.gov.uk/rates/iht-thresholds.htm

but yes presuming there are no gifts over £3K in the previous 7 years etc.
The Revenue will demand income tax on any income on which tax was still unpaid at the time of the parents' death.
Capital gains are wiped out by death, and anyway, a person's or couple's home, if it is the only home owned by them, is exempt from capital gains anyway. Inheritance tax applies on death, and includes all assets. But the contents of the house, unless thay are valuable paintings, rare musical instruments or antiques, will probably be ignored.
Capital gains taxes for the dead parents - Nil
IHT - are they both tragically dead at the same time ?
I still think you have to treat the deaths as independent events

Parent 1 - look at the will and distribute the assets (inc half the house) according to the details. IHT on a house of 150k assuming the house is owned in some way by both will be nil - even if the will says will not inherit if the heir does not survive 4 wks then there will be a remainder and it goes to him or her

Parent 2 Now with the increased assets, look at pt 2's will and distribute the assets according to the clauses
The house is worth £300 k and is still under the limit.
IHT Nil

For Miss X and Mr Y if the asset is disposed of, later much later then there may be CGT (on the house if it a second house) payable on the gain from date of death to date of disposal

and dont forget the income tax on pt 1 and pt 2 for the part of the fiscal year for which they were alive.

so this is basically a long answer for no there would be no tax
and please bear in mind I am not an expert in this


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