Q&As

Who pays inheritance tax on joint property passing by survivorship?

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Published by a LexisNexis Private Client expert
Published on: 27 November 2018
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This question may have particular significance where a valuable asset (such as a house) passes by survivorship to a surviving joint tenant and the residuary estate is not particularly valuable. Assuming none of the transfers of value on death are exempt or relieved, it will be important to establish who bears the inheritance tax (IHT) in respect of the jointly owned property (joint property forming part of the deceased’s estate for the purposes of calculating IHT payable). This Q&A focuses on the burden and liability of IHT on a transfer of value on death.

Burden of IHT versus liability for IHT

It is important to bear in mind the distinction between the burden of IHT and the liability for IHT.

The burden (sometimes referred to as the incidence of IHT) concerns who ultimately bears the burden of the tax. This may or may not be the same person who has a liability to pay the IHT due.

If a person is liable for IHT, they must account to HMRC for the tax

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Inheritance tax definition
What does Inheritance tax mean?

Inheritance Tax is paid on an estate when somebody dies or when trusts or gifts are made during someone's lifetime.

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