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comeandgo

Has the money been checked for old notes that are out of circulation and may be worth more than face value? We had old £50 notes, these we went to the bank with separately, they paid them into account no bother, non were worth more than £50.

Albermarle

There's no obligation on people to document gifts on the off-chance they might die. Any executors will need to do the best they are able with whatever information they can obtain.

This might well be true.
However in a real life scenario where someone has died and their visible assets add up to a level close to the IHT point . Surely if HMRC asked what gifts were given away in the last 7 years and the answer is 'I dunno, there are no records' they might become a tad suspicious ?

coyrls

Albermarle wrote: »

This might well be true.
However in a real life scenario where someone has died and their visible assets add up to a level close to the IHT point . Surely if HMRC asked what gifts were given away in the last 7 years and the answer is 'I dunno, there are no records' they might become a tad suspicious ?

Is this real life scenario relevent in this case? We don't know.

Alexland

Albermarle wrote: »

Surely if HMRC asked what gifts were given away in the last 7 years and the answer is 'I dunno, there are no records' they might become a tad suspicious ?

Maybe but if there are no records of cash movements what are they going to do about their suspicions?

Alex

Keep_pedalling

jamei305 wrote: »

There's no obligation on people to document gifts on the off-chance they might die. Any executors will need to do the best they are able with whatever information they can obtain.

True that there is no obligation, but I does make life so much easier for your executor when the inevitable does happen.

skatersrus

No tax to pay on that gift, but there will be tax to be paid on cash gifts above a certain amount.

You can take cash gifts tax free for £3000 a year, you can carry over the allowance 1 year so you can claim two years allowance of £6000 in total tax free. But you will need to pay tax anything above that.

It's good your grandmother is "with it" and slowly giving her money away. It's quite rare in this day in age for someone to be so trusting in their old age. People dont look after their elderly and let them die alone.

skatersrus

Sorry I tried to put a gov.uk link and it wont let me as I'm a new user.

Caveat emptor: tax rules make my head spin, do your own research. This is what I remember from studying taxation very long time ago.

comeandgo

skatersrus wrote: »

Sorry I tried to put a gov.uk link and it wont let me as I'm a new user.

Caveat emptor: tax rules make my head spin, do your own research. This is what I remember from studying taxation very long time ago.

Tax rules change and you are wrong with tax being due on gifts over £3,000, tax is not due on gifts of less than £3,000 which you did state correctly.

p00hsticks

skatersrus wrote: »

No tax to pay on that gift, but there will be tax to be paid on cash gifts above a certain amount.

You can take cash gifts tax free for £3000 a year, you can carry over the allowance 1 year so you can claim two years allowance of £6000 in total tax free. But you will need to pay tax anything above that.

No they won't. In this country there is no tax to be paid on gifts of any amount.

All there is potentially is the possibility of inheritance tax needing to be paid if the donor dies within seven years of makng the gift and their estate (including the gifted amount) exceeds the IHT limits.

eskbanker

skatersrus wrote: »

No tax to pay on that gift, but there will be tax to be paid on cash gifts above a certain amount.

You can take cash gifts tax free for £3000 a year, you can carry over the allowance 1 year so you can claim two years allowance of £6000 in total tax free. But you will need to pay tax anything above that.

Exactly which tax are you referring to?