Inheritance tax

Mumwithquestion

My father is very kindly looking at helping us with our home improvements. Is there any inheritance tax or other benefit to him paying the builder directly rather than just giving me the money to pay the builder?
Thanks. 

Keep_pedalling

No, it will be far simpler for him to give you the money. Giving you the money in advance will also start the clock ticking on the 7 year rule earlier. 

SeniorSam

A gift to someone may come into the gifting rules of inheritance tax  IF on the death of the giver, his or her estate is likely to exceed the Inheritance Tax Nil Rate Band allowance.

That allowance, presumably with him owning his own home, would be £325,000 as far as inheritance tax is concerned, PLUS Residential allowance of £175,000 (so over £500,000 and tax may be within the calculation of gifting).

In addition, if that person is married and he left everything to his wife on death, then HER allowance would also be added (so £1,000,000 between them)

With estates of less than that he can give away whatever he wishes. In my own opinion, it could be easier for him to pay the contractor but others may think differently.

getmore4less

Mumwithquestion said:

My father is very kindly looking at helping us with our home improvements. Is there any inheritance tax or other benefit to him paying the builder directly rather than just giving me the money to pay the builder?
Thanks. 

None......
As said potentially more beneficial to gift ASAP to get the clock running.

Assuming he does not live with you.