tax due from early inheritance?

qprjames

Hi there, hopefully this is the right section to post this in.

My mother has decided to gift me 100k to help me buy a house. she has labelled it as 'early inheritance'. I will therefore receive this money as a 'gift'

now, I know if she was to pass away within the next 7 years there would be capital gains liable on this amount - based on the 7 year sliding scale.

but......is there any immediate tax I would need to pay on the amount when I receive it? I assume I don't declare it as income amount?

(the amount has already been taxed, when she earns it years ago, and it has just sat in her bank account gathering dust until now).

thanks for your help

JGB1955

There's no CGT but  potentially, IHT payable on your mother's estate.  Depending on your mother's age there may be other issues/concerns regarding deprivation of assets..

This question is probably better addressed on the Deaths and Probate forum...
https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

GrumpyDil

There won't be any capital gains tax whatever happens.

If your mother passes away within 7 years then there might be an inheritance tax liability depending upon the size of your mother's estate amongst other factors. 

Keep_pedalling

£100k does not qualify for taper relief so the full amount will remain in her estate for IHT purposes for the full 7 years.

Jeremy535897

There is no tax on the making of a cash gift. You do not declare it as income or capital gain. Assuming your mother has made no other gifts (except within exemptions) there is never any tax on the gift, even if she dies within seven years of making the gift. However, if she does die within seven years, the inheritance tax nil rate band applied to her estate will be reduced by the taxable element of the gift (the £100,000 less any available exemptions). Taper relief is not applicable.