Inheritanc Tax

Enigmaman

My mother's estate is likely to be worth a little over the 325K threshold although it is marginal and depends on the house price at the time. So obviously the estate would be taxed at 40% on anything over that threshold.

My mother has asked me if I have any idea what she can do about this. I presume absolutely none, unless she gives away a certain amount of her estate during her lifetime… Is that actually legal? Or could HMRC treat this as disposal of capital, whatever the technical term is, and charge tax regardless? 

Brie

I believe it depends on how long she lives after gifting the money.  There was something about 7 years for it not to be of note.  That said if she's giving each of her children £500 each birthday/Christmas for the next few years that might be sufficient and be under the radar for HMRC.  If on the other hand she gives you £200k HMRC might still tax it even if you have it in your bank account.

sheramber

Does your mother have any NRB available from a pre deceased spouse?

if she leaves the house to you her free amount is increased.

https://www.gov.uk/inheritance-tax

JGB1955

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

Enigmaman

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

Thats' useful to know, thankyou. The estate will almost certainy be under 5000K

[Deleted User]

Enigmaman said:

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

JGB1955 said:

If your mother is leaving her house/estate to you, the threshold can increase to £500k.
Inheritance Tax: Passing on a home - GOV.UK (www.gov.uk)

Thats' useful to know, thankyou. The estate will almost certainy be under 5000K

Just as certain to be no inheritance tax due on that basis.