IHT incidence of tax on joint tenancy

I have a Testator with a house she lives in held as joint tenants with her partner A. Half share value £150,000 (Subject to 10-15% discount)
She has two other properties total value £330,000) to be left subject to tax to nephew B
Residue total approx £30,000 divided 30% charity, 70% Niece C. I will include usual exempt/non exempt clause
Total estate £510,000 less say £10,000 charity exempt.so tax £70,000.
Is tax apportioned between A 30%, B 66% & C 4% or is joint tenancy transfer deemed to have taken place first and used part of the nil Rate Band

The joint tenancy passing by survivorship will be aggregable with the estate for calculating the IHT due on death.

HMRC should normally be asked to assess the IHT on the (former) joint property directly on the surviving co-owner(s), who are liable to pay the IHT unless the will of the deceased provides otherwise.

On the basis of the values: £150,000 / £330,000 / £21,000 to be due to A, B and C, the apportionment 30/66/4 looks about right.

If a 15% discount is allowed for the (former) joint property, the apportionment approximates to 27/69/4.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals