help on inheritance tax issue uk

CLAPTON

pablogp wrote: »

thanks, but this is assuming something happens to her in the next 7 years? If nothing does happen, I assume she is not liable to inheritance tax?

The IHT issue arising from any property that has been given away but your mother/father is still living in as this will be seen as a gift with reservation and so will be included in your mother's estate irrespective of how long she lives. In addition cgt will be payable should it ever be sold.

for her 'old' family home : if she no longer lives there, then after 7 years it drops out of her estate for IHT purposes: however if you are the only one living there, then if you sell only your share will be cgt exempt whilst your sister's share will be liable to cgt


no idea about spanish law

pablogp

thank you, it makes sense. Just seems so complicated trying to avoid paying any tax at all

Mojisola

pablogp wrote: »

3 years ago, my parents put the family house in my sister and my name. It was valued at £500k approx.

My mother has two other properties which she is thinking of putting in my sister and my name.

I would now like to purchase a property with the financial help of my parents, with each of them giving me £100k for the deposit.

pablogp wrote: »

thank you, it makes sense. Just seems so complicated trying to avoid paying any tax at all

I suppose you'll still want to be able to use all the services that are funded by taxpayers though?

pablogp

including myself, yes.

Perhaps the previous wasn't phrased properly. Seems complicated to avoid paying tax where it can be avoided - within the law of the land.

Wouldn't you try and avoid paying taxes when possible? within the letter of the law?

not sure why you went out your way to highlight my comments...

le_loup

Probably because you seem to be a very lucky individual.
The rest of us have no choice about the tax we pay.

Mojisola

pablogp wrote: »

not sure why you went out your way to highlight my comments...

That all adds up to what - around £1 million given away without any tax? - perhaps it's time we had a gift tax on higher amounts.

CLAPTON

this is a money saving website and we are being asked what the tax consequences are of totally legal and reasonable actions.

Many of us use ISAs, explain how cgt, IHT, transfer of spouse IHT allowance can work etc without personal judgement.

plenty of other forums for political and judgemental comments

Mojisola

CLAPTON wrote: »

this is a money saving website and we are being asked what the tax consequences are of totally legal and reasonable actions.

Many of us use ISAs, explain how cgt, IHT, transfer of spouse IHT allowance can work etc without personal judgement.

plenty of other forums for political and judgemental comments

Yes, I know. Just got irritated at someone moaning at it being complicated to make tax savings on £1m.

pablogp

Good Morning,

I have come on this forum to understand how to go about things, and how to do things properly. After all, the name of the website would suggest I have come to the right place. I'm not moaning about paying tax, i'm moaning more about the complexity of the system which is what brought me to this site.

Irrespective of how much I may inherit, I don't feel you, Mojisola, are in a position to judge me. If I was to inheriting £10k rather than the £1m you suggest, would that have bothered you less?

My parents have worked very hard to provide my sister and myself with a more comfortable life than they have had.

If the IHT is what it is, set by are government, don't be bitter about other people's fortunes. I count myself very lucky for what I have.

Daniel54

pablogp wrote: »

Good Morning,

I'm not moaning about paying tax, i'm moaning more about the complexity of the system which is what brought me to this site.

The system is ( in my view quite correctly) designed to make it difficult to avoid tax -that is one reason why it is complex and why your parents would be really well advised to pay for proper professional advice ,as their current approach seems somewhat DIY.

I assume you are aware both parents have a nil rate IHT band of £325k available to their estates on death.

Your mother ( and your father if he returns to the UK) also needs to be aware of deprivation of assets and you and your sister should ensure they retain sufficient means to pay for any potential long term care

http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/