My brother and I have a further £131,000 to pay after parents’ house was left to us
Q I wonder if you can help me. My brother and I have inherited my late parents’ house and due to the size of the estate we’re left with an inheritance tax bill of £242,000. We have paid £101,000 of it but still have a further £131,000 to pay and have no liquid cash to pay it. We do plan to rent the house out for £2,000 a month. Are we best taking out a mortgage on the property and paying the tax bill or paying it off at £24,000 a year?
JL
A I’m surprised that you are making a decision now because the government guidelines say: “You must say on inheritance tax account form IHT400 if you want to pay in instalments.”
