IHT on living in oarent's house?

Ted_Bloke

Does having a son and family living rent free in (self-contained) part of father's property and father paying gas/electricity/water bills and Council. Tax constitute a gift for the purposes of IHT? I mean would the last 7 years of this constitute something that could be inheritance-taxed?

00ec25

if father is paying for the utility costs from this regular income without there being any reduction in father's savings/capital then those payments would fall outside the scope of IHT anyway.

if father is paying for them and his cash savings are reducing as a consequence then yes they would count for IHT purposes under the 7 year rule.

Linton

There is an IHT gift exemption for payments to help with another person's living expenses - see here. I Whether it would apply in the OP's circumstances I dont know but could be worth investigating.

Keep_pedalling

Is this self contained dwelling treated as a separate dwelling for Council tax purposes and does iit have its own utility supplies?.