Mark McLaughlin looks at the inheritance tax treatment of joint bank accounts.
Joint bank and building society accounts (e.g., between spouses or civil partners, or family members) can be tricky for inheritance tax (IHT) purposes when one of the joint account holders dies. The main difficulty is in establishing how much of the balance in the account ‘belonged’ to the deceased immediately before death; was it 50%, 100%, or something else?
This article considers the IHT treatment of joint accounts in England, Wales and Northern Ireland. In Scotland, the position may differ (see the HM Revenue and Customs (HMRC) Inheritance Tax Manual at IHTM15051 and IHTM15054).
How does it work?
A person's estate for IHT purposes generally comprises the property to which they are beneficially entitled. A person with a general power to dispose of(
