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Being Gifted 40k what are the Tax implications?

queeniedog
Posts: 30 Forumite
in Cutting tax
Hi Everyone
My 2 sisters and I are being gifted approx £40k each by our Mum. Some one has told me that we are liable to pay tax on this gift if our Mum passes away in the next 7 years (she is 69 yrs old)
Does anyone know if this is true or if indeed there are other tax liabilities that we should be aware of before accepting the Money from Mum?
Your help is much appreciated
My 2 sisters and I are being gifted approx £40k each by our Mum. Some one has told me that we are liable to pay tax on this gift if our Mum passes away in the next 7 years (she is 69 yrs old)
Does anyone know if this is true or if indeed there are other tax liabilities that we should be aware of before accepting the Money from Mum?
Your help is much appreciated
2013 Grocery Challenge £450 pm
Jan £279 / £450 (+£171) :j
Feb £154 / £450
2013 save £12k Challenge £0 / £12000
Jan £279 / £450 (+£171) :j
Feb £154 / £450
2013 save £12k Challenge £0 / £12000
0
Comments
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there is no tax as such on gifts
however, if your mothers dies within 7 years and her estate plus the value of the gifts (with some exclusions) make in the last 7 years, are greater than the Inheritance tax allowance then her estate will be liable for IHT.0 -
What if I want to gift money to my parents who are not residents in the UK? Can I deduct some money from my tax bill?What good am I, if I am like the rest. - Bob Dylan0
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If your mother needs residential care (at local authority expense) she will probably be regarded as having disposed of assets to avoid paying care costs>This is an open forum, anyone can post and I just did !0
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Thank you for your reply.What good am I, if I am like the rest. - Bob Dylan0
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If your mother needs residential care (at local authority expense) she will probably be regarded as having disposed of assets to avoid paying care costs>
Hi My Mother is very comfortable with a large family home bought and paid for thank you and there will be no avoidence of care costs in the future and in no way is she giving money to us now to dispose of assets. My question was purely around the tax implications of being given a sum of money by my Mum2013 Grocery Challenge £450 pm
Jan £279 / £450 (+£171) :j
Feb £154 / £450
2013 save £12k Challenge £0 / £120000 -
That's why the first word of my post was if. There can be other consequences in some cases, just trying to point out possible pitfalls.This is an open forum, anyone can post and I just did !0
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Not sure I agree with Clapton. It's the recipient of a PET (not the donor's estate) who will be liable for any IHT if the donor dies within 7 years of the gift.'0
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Of course it's the estate. Except if the estate does not have enough value to pay the IHT. Why create these confusions? You have form!0
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James,_Oxford wrote: »Not sure I agree with Clapton. It's the recipient of a PET (not the donor's estate) who will be liable for any IHT if the donor dies within 7 years of the gift.'
Could be either depends on the size of the gift and whether there is enough left in the estate to pay the tax.
Generally if the value of the gift is less than the IHT threshold then the estate pays the tax on death within the seven years.
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#40
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