Tax on Gifts - Under Inheritance Tax amount

lukey2k

I was wondering if any one can help me out

My grandparents have recently passed away leaving their estate to my farther.

As he has now has surplus cash he would like to give me and my brothers money in the form of a gift.

As far as I am aware we will not have to pay capital gains tax on this gift and income tax will only apply to the interest earnt from this money .

If any one can either correct me or provide further information this would be very useful as I keep drawing dead ends when searching the internet.

Regards,
Luke

dzug1

Correct as far as it goes.

But if your father should die within 7 years the gifts will be added into his estate for inheritance tax purposes

And if he should go into a care home and require local authority funding then it may be regarded as deliberate deprivation of assets and they will not pay his fees.

If the sums are involved are considerable it may be worth spending a few £100 on a Deed of Variation on your grandparents' estate - that way the money will pass staright to you without involving your father.