Half share passed to grandchildren?

[Pezza54]

IHT form 435 Q7
"What percentage of the residence passes to direct descendants....?"
Answer for your form is 25%

[Windymiller]

Just to clarify (excuse me for being a bit thick), and of course these figures are guesses.

Half of my father's main residence = £350k.
Other house he rents out = £300k
Total = £650k (no gifts at all to worry about)
IHT would start after £325k or £500k (as I'm direct descendant, even though inheriting only 25% of main residence).

So either £325k + 60% of remaining £325k to be shared out 50/50 between myself and my uncle.

OR £500k + 60% of remaining £150k to be shared out 50/50 between myself and my uncle.

All this minus solicitor's costs, of course.

[Pezza54]

IHT on your father's estate is £150k x 40% = £60K leaving £590K to be shared 50/50 = £295k each
So your 2nd method produces the correct amount in a roundabout way

[Windymiller]

Thanks so much for your time, Pezza54