HMRC & Gifts

john24way

Advice on this question please - a parent pays directly from their bank account for Stamp Duty, Property Tax, and Vehicle Tax on items which he/she neither owns or has an interest in. Would any of these payments constitute a gift to the owner(s) for Inheritance Tax purposes:question:

00ec25

2 possible outcomes only

1. All would be a gift under the "7 year" rule for parent's IHT purposes

OR

2. All/some (eg road tax) would fall outside parent's IHT because there is evidence retained that they fall within the normal spending pattern of the parent, and therefore are paid out of parents "surplus" income rather than being a transfer/reduction of parent's wealth as a consequence of the parent gifting an early inheritance.