How does the tax man know?

ceeforcat

Some figures please and we will help you.

Value of land at time of gift and date of gift.

Value of land now.

John_Pierpoint

Molly, I really don't think you have much to worry about. The current IHT threshold is 325K. Your dad is allowed to give away 3K per year with a two year allowance for starters (ie 6K) He is also allowed to make gifts from his (taxed) income.

What is the position with your father's wife/wives/legal partner? (we have to be politically & legally correct about these things).

cajef

John_Pierpoint wrote: »

Molly, I really don't think you have much to worry about.

I doubt that she is still worried as it is five and a half years since her post on these forums.:D

Jack.h_2

The land was worth about £60,000 when it was gifted to us over ten years ago. We now have building permission and it is worth about£180,000.

bobbyj_2

these threads make me chuckle with these pompous dogooders. Whilst i'm categorically against anyone not payin their dues i have to laugh at these replies! Oh yes you must declare this and must pay that - probably from many who have never broke any laws, never driven over 30 in a 30 zone. The best i've seen was a young couple paying their parents to look after their baby so they could both return to work and were worried about the mother not declaring this little extra income! Pathetic, so most here would prefer for both to felch off the state and go on the dole instead of the mother maybe paying 10-20 quid a month in tax? Pathetic when we have scroungers sat on their lazy rses being paid not to work and living in 300,000 grand houses at our expense. Some good advice on these boards but also the boards imo are also riddled with pompous neighbourhood watch dogooders. rant over :-)

smjxm09

My parents gave me £5000 less than a year ago to pay for a new bathroom and now they want to give me £10000 to pay for a new kitchen.
Could they credit the accounts of my wife and our 2 teenage children (15 and 17) who then pass it on to me as a legal way to avoid inheritance tax?

jennifernil

Each parent can gift a total of £3000 in a tax year, so you need to look at dates first. If nothing was gifted in the previous tax year, then that allowance can be carried forward to the following year. In that situation a couple could gift a total of £12000 in one year.

It doesn't matter who they give it to, it is the total amount each gives that counts.

They can also make some small gifts, and gifts out of income.

They can, of course gift as much as they wish, and if they live a further 7 years, that gift will not count for IHT (though it may be a PET, depending on the size of the estate and the gift)

see here.........

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm