IHT question

dzug1

billy78 wrote: »

Thanks Dzug1,

So in theory the executor has probably paid the IHT on the estate - or should have by now.
Would this six month limit apply in the case of them 'chasing ' us for our contribution from our gift?

Thanks, Bill

Alas no - I suspect they have 7 years to do that.

(I've editted my post - more thoughts there)

billy78

Dzug, thought as much.
Saw your edit after I'd replied above...

Thanks

billy78

So, now I'm thinking I should just sit it out and wait for the executor to contact me, whilst preparing the money just in case.
Can anyone do a 'worst case scenario' in terms of tax payable in this situation?
Thanks again, Bill.

dzug1

Based on an estate of £550K and no charitable donations very roughly £15K

billy78

Thanks For the reply.

Just out of curiosity, why are we not liable for 40percent of the 90k?

Thanks again, bill

dzug1

billy78 wrote: »

Thanks For the reply.

Just out of curiosity, why are we not liable for 40percent of the 90k?

Thanks again, bill

John Pierpoint's post explains it - your PET was (very roughly) 20% of the estate, so would pay 20% of the total IHT due

(Having checked my arithmetic, his £18K is nearer the mark than my £15K - apologies)

billy78

Of course.
That's great. Thanks for your input.

John_Pierpoint

If you are passing a probate registry office you can call in and see if the executor has been granted probate yet. It involves search on a screen.

If you want an official embossed copy of the grant it costs a tenner, plus a bit extr if there is a complicate multi page will to go with it, if I remember correctly.

There is a gross and net figure quoted for the estate - these are the legal figures rather than the tax man's figures - but they give a good guide in most cases.

[When my grandmother died and nobody had heard anything for about 18 months, I went along to the then Somerset House.
I waded through the then manual records and found two deaths for exactly the same name - the first one had left some minimal sum (let us say 5K in today's money) so I was pretty sure that was not grandmother's 4 bed house].

The tax men gets restive after 6 months and starts charging interest on any unpaid IHT. After all the tax man is the missing beneficiary, but he gets the first bite at the cherry.

billy78

Thank you all for your responses.
Just checked my old bank statements. We were in receipt of the gifts in October 2007. Our friend died in November 2010, so we obviously fall into the 80% band in terms of taper relief.

Bill.

dzug1

billy78 wrote: »

Thank you all for your responses.
Just checked my old bank statements. We were in receipt of the gifts in October 2007. Our friend died in November 2010, so we obviously fall into the 80% band in terms of taper relief.

Bill.

You don't - there is no taper relief unless the gifts themselves were more than the nil rate band. Yours were well under

Taper relief is much misunderstood.