Giving my mum money

e.ebr

HI,

I recently received money from my grandmothers estate and want to give it to my mum. Im in a position where I am living comfortably with my fianc! and rent is low as it is his parents house, and she is struggling to pay rent and does amazing work for charities and has given me money all her life. It is roughly £19,000 as in euros its €25,000. Will i have to pay inheritance tax? So confused or is it gift tax and is there a cap on how much money you can give tax free? And how do i go about it?

Thank you!!!!!

[Deleted User]

Before others come on expressing exasperation because this question is asked almost every day -

THERE IS NO GIFT TAX IN THE UK.

FURTHERMORE INHERITANCE TAX IS PAID BY THE ESTATE NOT BY THE RECIPIENT i.e. before you received your inheritance.

e.ebr

Thank you. Sorry if its obvious.

So no tax?
No cap?
No one to notify?


Would it be the same the other way round?

campbell19925

e.ebr wrote: »

Thank you. Sorry if its obvious. But just to clarify I can transfer the funds totalling roughly £19,000 and not to have to pay any tax?

As long as you are planning to stay around for the next 7 years you'll be alright and your mum won't have to pay any tax.

[Deleted User]

You pay no tax . Your mum pays no tax. (We will assume that YOU do not leave this world within the next seven years).

Just ensure that it does not affect any benefits your mum may receive currently the effect on which I have no clue!

xylophone

https://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0608


If the donor dies within 7 years of making a PET, it fails and
becomes a chargeable transfer for IHT purposes. If this
happens, it's necessary to calculate whether any IHT is due.
If the failed PET falls within the donor's available nil rate
band, there's no IHT to pay on the gift. If the failed PET
exceeds the donor's nil rate band, the recipient of the PET is
normally liable to pay the IHT due, but HMRC can claim from
the estate if it's unable to recover the tax otherwise.

xylophone

I recently received money from my grandmothers estate and want to give it to my mum

Is a Deed of Variation of the will possible so that the gift goes to your mother rather than to you?

getmore4less

00ec25 wrote: »

why bother? the legacy appears to be in Euros so the estate appears to be outside the UK in which case a variation on a foreign will to reduce exposure to IHT is somewhat redundant

With a DOV it is the OPs potential IHT UK situation that is important not the deceased.