Advice please

Bassbob

Mt dad who is 84, has given me seven thousand to put towards the costs of a new flat.I understand that he can only give three thousand away as a gift, is he liable for any comebacks on this?, or could we say it was a property investment etc

debbie42

A similar case was discussed recently in this thread.

Basically, the 3K amount is related to Inheritance Tax (IHT) liabilities.

Bassbob

Ahh i see thanks Debbie,so its ok then? it just that hes very worried, i mean he isnt claiming any benefits etc, just recieving pensions from former employers., We are both just trying to get out heads around this,lol

voyagerbear

debbie42 wrote: »

A similar case was discussed recently in this thread.

Basically, the 3K amount is related to Inheritance Tax (IHT) liabilities.

Could you please explain what this is please.:cool:

Bassbob

voyagerbear wrote: »

Could you please explain what this is please.:cool:

Its all a bit confusing isnt it;)

debbie42

Bassbob wrote: »

Ahh i see thanks Debbie,so its ok then? it just that hes very worried, i mean he isnt claiming any benefits etc, just recieving pensions from former employers., We are both just trying to get out heads around this,lol

Yes, it's ok to gift whatever you like, is the short answer. Dunstonh had a more detailed reply in that thread.

debbie42

voyagerbear wrote: »

Could you please explain what this is please.:cool:

Inheritance Tax, or the 3K gift allowance?
You are allowed to gift up to 3K in any one tax year without it being subject to Inheritance Tax (IHT). If you gifted more, say 100K, and the giver died within 7 years of the gift, then it could be considered as part of the estate, for IHT purposes. If the giver lives for more than 7 years then it doesn't affect the estate.

The IHT threshold is around 300K per person, or 600K per couple. So if an estate is less than this, there is no IHT liability.

voyagerbear

Thanks Debbie, had no idea what it was before.:p