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This is a specific allowance for a parent leaving a house to a son/daughter.
Either they leave it (or a proportion of it) to children and use the £500k allowance or they leave the property to their spouse (which doesn't trigger IHT) and that allowance also gets passed to the spouse in addition to theirs.
Without passing it on you'd just get a £500k proportion of the property being left to children on the death of the first parent.
aggi-
Without passing it on you'd just get a £500k proportion of the property being left to children on the death of the first parent.
I knew there was no IHT passing to spouse, I just hadn't got as far as thinking it through to this. Also the H in InHeritance Tax always looks funny to me but I guess it stops it being Information Technology.
hoefla
Is that really what happens? but once one half of the couple dies, you're left with one person, so shouldn't it just be the same limits for inheriting from that one person? It doesn't matter that they were once married. (I'm not disupting, just seems weird. Adding together works if they both die at the same time. I supposed there could be a certain time buffer like if they died in the same month or something... could get complicated.)