Jointly owned property - co-habiting couple. IHT treatment on death.

Jona

Hi all,

Just seeking sense check on treatment, from an IHT perspective, of main home owned on a joint tenant basis on death.

Couple is co-habiting and are not married / civil partnered. Wills past estate to each other.

Would 50% of the property value be included in the estate of first to die?

And on second death, 100% of the property value is included in their estate?

Feels like double taxation, but I guess that is due to the absence of a spousal exemption.

Thanks in advance.

les_cameron

Correct - they need to get married/enter a civil partnership.

50% of the property value is chargeable.

May get QSR though - https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm22041