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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To wonder why there isn’t public outrage about this?

873 replies

Blusterylimp · 30/01/2025 12:23

If a couple isn’t married but own their property between them, the surviving one will need to pay inheritance tax on their partners half of the house (and other assets) if they die.
Effectively they will lose their home to pay the IHT unless they also have huge savings.
How can that be allowed in this day and age when so many couples cohabit without getting married?

OP posts:
Thread gallery
12
anniegun · 30/01/2025 16:16

AshCrapp · 30/01/2025 13:11

What is confusing about it? I want children with my DP, but I don't want to be financially tied to him. If we break up, I don't want him to walk away with half of my house and half of my pension.

Show quote history

A lot of men take that approach

Princessconsuelabananahammock9 · 30/01/2025 16:16

An outrage was black and white people not being allowed to marry, gay people not being allowed to marry.

Not couples not wanting to commit but wanting the legal benefits.

That's just privilege.

Bjorkdidit · 30/01/2025 16:18

NordicwithTeen · 30/01/2025 16:16

You have to pay IHT within 6 months of death. Where are you seeing 10 years?!

Show quote history

On the government website. You know, where they post the actual rules, not where people make shit up.

https://www.gov.uk/paying-inheritance-tax/yearly-instalments

Pay your Inheritance Tax bill

How to pay Inheritance Tax: get a reference number, payment methods, use the deceased's bank account, National Savings and Investments, government stock, yearly instalments.

https://www.gov.uk/paying-inheritance-tax/yearly-instalments

catmothertes1 · 30/01/2025 16:18

In today's UK,all couples (mixed or same sex) have the choice to get married or have a civil partnership.

I wonder if the OP was as outraged as they are now when same sex couples did not have any option at all and used to lose their houses as well as not be deemed to be next of kin of their long term partner.

Original poster
Blusterylimp · 30/01/2025 16:18

Bjorkdidit · 30/01/2025 16:12

Exactly. So 40% of £75k, ie £30k.

I don't understand the concern about 'losing the house'.

If you can't pay straight away, you can spread it over 10 years.

You can remortgage to release money that way - you own a house worth £800k, which is a huge amount of money, despite what MN seems to think.

If you're not in a position where you can take out a relatively small mortgage, it would have been recommended you take out life insurance to cover the potential tax liability.

Or you can make the whole problem go away for £150 at the register office by entering into a civil partnership or getting married.

Who's losing houses over all this?

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My house isn’t worth £800k though. No idea where that figure came from.
If it was worth £1650k then IHT would be £200k if my partner died. That’s a lot of cash to have to pay out.

OP posts:
Guineapiggywiggy · 30/01/2025 16:18

OP you could insure yourselves for the liability. That is one strategy. Or you get a prenup and get hitched.

However I agree, the law is behind the times, particularly with high prices (you couldn't own much round here that's not above 650k) Lots of people run separate finances and share a home. The issue is abuse of the system. Can siblings share for a lifetime and not get penalised, could cousins? How is it policed? I can see why the 'you're either married or you aren't' is a much easier solution to the conundrum.

Guineapiggywiggy · 30/01/2025 16:18

NordicwithTeen · 30/01/2025 16:16

You have to pay IHT within 6 months of death. Where are you seeing 10 years?!

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Wrong.

OP this thread just shows you, most people know fuck all!

Another2Cats · 30/01/2025 16:19

MixedBananas · 30/01/2025 13:21

Really? One family member didn't pay IHT at all. They inherited the house from their parents name was on the house so they took the whole home and never paid anything.

If their parents were married then they could leave an estate worth up to £1 million without paying any IHT. Was the house worth over £1 million?

There are also other allowances where there is a family business or farm

Princessconsuelabananahammock9 · 30/01/2025 16:19

catmothertes1 · 30/01/2025 16:18

In today's UK,all couples (mixed or same sex) have the choice to get married or have a civil partnership.

I wonder if the OP was as outraged as they are now when same sex couples did not have any option at all and used to lose their houses as well as not be deemed to be next of kin of their long term partner.

Exactly.

Original poster
Blusterylimp · 30/01/2025 16:19

Guineapiggywiggy · 30/01/2025 16:18

Wrong.

OP this thread just shows you, most people know fuck all!

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Yep, at least I know I know nothing 🤣

OP posts:
Digdongdoo · 30/01/2025 16:19

Blusterylimp · 30/01/2025 15:53

It’s quite funny that people are saying that I must be stupid for not knowing this and then multiple posters are quoting totally incorrect information about joint tenants/tenants in common.
There is a lot of confusion about IHT rules.

Show quote history

It's not so much confusion as wishful thinking. The rules are quite simple.

SharpOpalNewt · 30/01/2025 16:20

Blusterylimp · 30/01/2025 12:23

If a couple isn’t married but own their property between them, the surviving one will need to pay inheritance tax on their partners half of the house (and other assets) if they die.
Effectively they will lose their home to pay the IHT unless they also have huge savings.
How can that be allowed in this day and age when so many couples cohabit without getting married?

A lot of people cohabit and don't want to share their assets, or live with another family member who is not their partner.

I think sharing assets and the tax benefits associated should be something you opt into not a default which needs opting out of.

Guineapiggywiggy · 30/01/2025 16:20

BunnyLake · 30/01/2025 16:13

Phew. That’s what I have.

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It's NOT effective at preventing IHT

Bjorkdidit · 30/01/2025 16:20

Blusterylimp · 30/01/2025 16:18

My house isn’t worth £800k though. No idea where that figure came from.
If it was worth £1650k then IHT would be £200k if my partner died. That’s a lot of cash to have to pay out.

Show quote history

It was an example from someone else. But in your case, you'd still need to pay IHT whether you were married or not because the allowance is 'only' £1M between you at most.

What services would you like to cut or who would you like to pay more tax so you can inherit over £800k tax free?

SerendipityJane · 30/01/2025 16:21

What services would you like to cut or who would you like to pay more tax so you can inherit over £800k tax free?

That's an easy one. The ones I don't use or need.

Digdongdoo · 30/01/2025 16:22

Blusterylimp · 30/01/2025 16:18

My house isn’t worth £800k though. No idea where that figure came from.
If it was worth £1650k then IHT would be £200k if my partner died. That’s a lot of cash to have to pay out.

Show quote history

It is a lot of money. Which is why you need to plan ahead - get married, save the IHT or plan to downsize.

Guineapiggywiggy · 30/01/2025 16:22

Bjorkdidit · 30/01/2025 16:20

It was an example from someone else. But in your case, you'd still need to pay IHT whether you were married or not because the allowance is 'only' £1M between you at most.

What services would you like to cut or who would you like to pay more tax so you can inherit over £800k tax free?

Show quote history

ok, now you're talking shite. There is no IHT between couples. So no IHT on a £3BILLION home, only when the 2nd person dies

Original poster
Blusterylimp · 30/01/2025 16:22

Bjorkdidit · 30/01/2025 16:20

It was an example from someone else. But in your case, you'd still need to pay IHT whether you were married or not because the allowance is 'only' £1M between you at most.

What services would you like to cut or who would you like to pay more tax so you can inherit over £800k tax free?

Show quote history

I wouldn’t be inheriting any money, I would just be able to stay in my home

OP posts:
billycat321 · 30/01/2025 16:22

That's why mothers have always said to their daughters, 'Get that ring on your finger first, my girl'.

Greyish2025 · 30/01/2025 16:23

Guineapiggywiggy · 30/01/2025 16:18

Wrong.

OP this thread just shows you, most people know fuck all!

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What a generalisation, I mostly find that arrogant people who come out with statements like the one you just wrote are usually not half ( sometimes less) as bright as they think they are

justteanbiscuits · 30/01/2025 16:23

Blusterylimp · 30/01/2025 16:18

My house isn’t worth £800k though. No idea where that figure came from.
If it was worth £1650k then IHT would be £200k if my partner died. That’s a lot of cash to have to pay out.

Show quote history

If you live in a house worth £1.6m then sorry, you really don't have a lot to complain about! Mortgage it for the £200k. Equity release that's only payable when you sell / die.

KateDelRick · 30/01/2025 16:24

There's no "outrage" because people know about this.
They either get married, or ensure that they are tenants in common for the property, as pp have said.

Tomatotater · 30/01/2025 16:24

Blusterylimp · 30/01/2025 12:25

Might be easily solvable but a lot of couples don’t want to get married.

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They can have a civil partnership then. Ypu can't just gove rights to Al people who own a house together

Original poster
Blusterylimp · 30/01/2025 16:24

Guineapiggywiggy · 30/01/2025 16:22

ok, now you're talking shite. There is no IHT between couples. So no IHT on a £3BILLION home, only when the 2nd person dies

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Yep, more misinformation. The state is welcome to all our assets when we both die but it would be nice not to lose my home when my partner dies even though he has left it to me.

OP posts:
Bjorkdidit · 30/01/2025 16:25

Blusterylimp · 30/01/2025 16:22

I wouldn’t be inheriting any money, I would just be able to stay in my home

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Well in that case I'll buy it off you for your £200k IHT liability and let you live in it rent free for life?