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  • FIRST POST
    • Ted Bloke
    • By Ted Bloke 3rd Dec 17, 2:12 PM
    • 20,185Posts
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    Ted Bloke
    IHT on living in oarent's house?
    • #1
    • 3rd Dec 17, 2:12 PM
    IHT on living in oarent's house? 3rd Dec 17 at 2:12 PM
    Does having a son and family living rent free in (self-contained) part of father's property and father paying gas/electricity/water bills and Council. Tax constitute a gift for the purposes of IHT? I mean would the last 7 years of this constitute something that could be inheritance-taxed?
    Witch hunt saboteur. Sorry my posts so long - not time write shorter ones. A liberal is a man too broadminded to take his own side in a quarrel - “The very first step we must take is the acquisition of enough self-respect and self-confidence to say that we have met an enemy and that he is not us, but someone else.” De asini callidi nauseatum sum
Page 1
    • 00ec25
    • By 00ec25 3rd Dec 17, 2:54 PM
    • 5,555 Posts
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    00ec25
    • #2
    • 3rd Dec 17, 2:54 PM
    • #2
    • 3rd Dec 17, 2:54 PM
    if father is paying for the utility costs from this regular income without there being any reduction in father's savings/capital then those payments would fall outside the scope of IHT anyway.

    if father is paying for them and his cash savings are reducing as a consequence then yes they would count for IHT purposes under the 7 year rule.
    • Linton
    • By Linton 3rd Dec 17, 4:55 PM
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    Linton
    • #3
    • 3rd Dec 17, 4:55 PM
    • #3
    • 3rd Dec 17, 4:55 PM
    There is an IHT gift exemption for payments to help with another person's living expenses - see here. I Whether it would apply in the OP's circumstances I dont know but could be worth investigating.
    • Keep pedalling
    • By Keep pedalling 3rd Dec 17, 5:52 PM
    • 4,069 Posts
    • 4,432 Thanks
    Keep pedalling
    • #4
    • 3rd Dec 17, 5:52 PM
    • #4
    • 3rd Dec 17, 5:52 PM
    Is this self contained dwelling treated as a separate dwelling for Council tax purposes and does iit have its own utility supplies?.
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