Inheritance Tax rules

in Cutting tax
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nalayaknalayak Forumite
3 Posts
First Post
Newbie
I have 4 children and have recently given each £120,000. Two of them live abroad, 1 in Oz and the other in the US. Does the 7 year rule apply in these 2 cases?

Replies

  • diystarter7diystarter7 Forumite
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    Yes it applies to you not them. Different rules may apply to them but the 7 year rule applies to you.
     ..

    Before you spend, remember the 
    MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it.  (Quote from MSE  15/11/22)


    Politeness & courtesy are some of the few things in life that are free. Please remember that when posting, I may ignore permanently the unpolite, tedious, unconstructive and deliberately obtuse comments. Many thanks.
  • nalayaknalayak Forumite
    3 Posts
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    I'll be dead!
  • westy22westy22 Forumite
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    Your estate (which is technically the HMRC's creditor) lives on beyond the grave :smile:
    Old dog but always delighted to learn new tricks!
  • nalayaknalayak Forumite
    3 Posts
    First Post
    Newbie
    Thanks. What happens when my estate is insufficient to pay any IHT due?
  • Keep_pedallingKeep_pedalling Forumite
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    As your gifts exceed your NRB there could be a call on those gifts for IHT purposes should you not survive 7 years. This is only really a problem if you have given so much away that your residual estate does not have the funds to meet the tax bill. Taper relief will also apply to the part of the gifts that took you over £325k

    For the sake of your executors, please make sure you document these and any other gifts and keep a copy with your will.
  • diystarter7diystarter7 Forumite
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    If the OP died pennilessly and their estate could not meet the tax payments, will HMRC chase those gifted to in the uk and or abroad? I'm guessing they may do depending on if it was worth their while.
     ..

    Before you spend, remember the 
    MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it.  (Quote from MSE  15/11/22)


    Politeness & courtesy are some of the few things in life that are free. Please remember that when posting, I may ignore permanently the unpolite, tedious, unconstructive and deliberately obtuse comments. Many thanks.
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