Inheritance given early by parent will I have to pay tax?

jezster

Hello,
My father gave me my inheritance early, so I could use it as a deposit on a house, he has told me he did not have enough money at the time to be over the IHT level & still is not over now.He is now worrying that I might have to pay tax if he dies, we did ask the solicitor at the time that did the house conveyance, & he just said it's your fathers money he can do what he wants, I asked if the 7 year rule applied & he just repeated what he said, can anyone enlighten me.
Thank You

simpywimpy

As long as he doesnt go over the IHT were he to die within 7yrs there would be no tax to pay as far as I know.

CLAPTON

In anyone dies and their estate is larger than the IHT level (currently 325,000 or 650,000 if they can use their spouses allowance too) then their estate will have to pay IHT.

If they have given gifts away in the last 7 years before their death then theses gifts are 'added' back to their estate for IHT purposes.

So yes the 7 year rules may apply but any tax is paid from the estate and not specifically by the person who has received the gift.