Can a relative pay builders to avoid inheritance tax

GrubbyGirl_2

Look at it this way.  You would have to pay the total amount on your own building work.  Lets say your relative pays £10k of the £20k which would give you a tax bill of £4k in the worst case scenario.  Why not just put that £4k aside just in case?  60% of something is better than 100% of nothing

DullGreyGuy

GrubbyGirl_2 said:

Look at it this way.  You would have to pay the total amount on your own building work.  Lets say your relative pays £10k of the £20k which would give you a tax bill of £4k in the worst case scenario.  Why not just put that £4k aside just in case?  60% of something is better than 100% of nothing

It gives the estate a tax bill of £4k in worst case scenario not the OP

silvercar

In practice, executors aren't trawling through 7 years of deceased's bank accounts routinely. If they were aware of it they would declare it, if they didn't know of it I doubt they would see it, particularly a few smaller amounts.

As well as one of gifts of upto £3k, there can also be regular gifts out of income. Here is one article I found on the web that explains it:
https://www.gabyhardwicke.co.uk/briefing-notes/inheritance-tax-exemption-for-gifts-out-of-surplus-income/

GrubbyGirl_2

DullGreyGuy said:

GrubbyGirl_2 said:

Look at it this way.  You would have to pay the total amount on your own building work.  Lets say your relative pays £10k of the £20k which would give you a tax bill of £4k in the worst case scenario.  Why not just put that £4k aside just in case?  60% of something is better than 100% of nothing

It gives the estate a tax bill of £4k in worst case scenario not the OP

As the OP is clearly concerned about the tax implications so has a conscience then holding back £4K to repay the estate should it be needed is an option