Danger of gift tax???

srcandas

My brother and I are equal beneficaries of my mother's will.

£400,000 house £120000 cash. With my late father's transferred Inheritance tax allowance no Inheritance tax is due.

I want my brother to have the house and thus a bigger share. I will take all the cash and he will pay me £103000.

So he gets £297000 worth of house (£400000 house minus cash payment)
I get £223000 cash (My mother's £120000 plus cash from my brother of £103000.

Everyone is happy :beer:

But is there a danger of us getting hit by gift tax?
Do we need to do a deed of variation to get round it?

If anyone could shed some light as always I would be very grateful :beer:

le_loup

What gift tax?

getmore4less

No such thing as gift tax.

Allthough there is the potential for future IHT if brother net estate will be over the nill rate band.

The advantage of a DOV is it will keep the brothers nill rate band intact in case he does die in 7 years.

Are those number after IHT has been paid or was their a larger nill rate band

srcandas

le_loup wrote: »

What gift tax?

Ahh! Are you saying I have it wrong and I can give my brother £37000 and just do it?

And as executor with my brother's full blessing I can just transfer the house to him ands take his money and bob's your uncle?

Please tell me it is so

and tx for responding :beer:

srcandas

getmore4less wrote: »

No such thing as gift tax.

Allthough there is the potential for future IHT if brother net estate will be over the nill rate band.

The advantage of a DOV is it will keep the brothers nil rate band intact in case he does die in 7 years.

Are those number after IHT has been paid or was their a larger nill rate band

Getmore4less we had almost a £650,000 allowance as my father died 2006 and my mother 2011. My father's will had a deed of variation creating a £200000 trust equally between my brother and I. HMRC then allowed the transfer of the remainder of my father's allowance as a percentage of the current rate. They have confirmed in writing that no inheritance tax is due

Not really concerned by IHT on my brothers estate.

Cheers