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Would there be tax inheritance?
traceyloo
Posts: 28 Forumite
My brother and his wife are separating. She is leaving the home and happy to transfer ownership of the property to him for a sum of £25,000. To save my brother taking out a re mortgage my mother would like to pay the £25,000. Before we put this to the ex-wife, would there be any future pitfalls or problems of doing this? My mother's estate is small - savings and property approx £275,000. Would there be any tax to pay or inheritance tax? Thank you
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Comments
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None.......
No gift tax in UK.
Gifts don't increase IHT they are neutral.
Then after 7 years drop out of the estate (until then they are PETs)1 -
There is no gift tax in the UK and as her estate is well below the NRB IHT is not an issue.
I think this should be a loan rather than a gift, at least until the the divorce is finalised.2
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