From: Ronald Raygun 
Subject: Re: inheritance tax
Newsgroups: uk.finance
Date: Mon, 09 Jul 2007 21:51:59 GMT
Bytes: 2133

John Boyle wrote:

> In message <_Xwki.21097$p8.16075@text.news.blueyonder.co.uk>, Ronald
> Raygun  writes
>>
>>Of CGT and IHT, CGT seems to be the less pressing enemy, so why not
>>apportion it so that the parents' shares are such as to make optimum
>>use of their IHT allowances, and have them leave their shares directly
>>to the OP?  That way, so long as the house (plus rest of parents' estate)
>>is worth less than 600k (or will be worth less than twice whatever the
>>NR^H^Hthreshold will be at the relevant time), there will be no IHT to
>>pay.
> 
> No. An error there RR. When the first dies their share will pass to the
> OP. The survivor, by living in both halves, develops an interest in
> possession in that half and so on death their estate will be taxed as
> though it owns it, even though it doesnt.

Not so!  The OP will by then have moved back in with the survivor.