Giving money to siblings without tax implications

stuhse

Whether you agree with the rules is irrelevant, they are the rules.

user1977

stuhse said:

Whether you agree with the rules is irrelevant, they are the rules.

And unless you die within 7 years of the gift, the rules are irrelevant!

stuhse

7 years is one of the rules?

Savvy_Sue

7 years is the rule for IHT, and it tapers.

No such limit for Deliberate Deprivation of Assets, but if you retain sufficient funds to pay for any care you might need, that's not relevant.

Keep_pedalling

Savvy_Sue said:

7 years is the rule for IHT, and it tapers.

No such limit for Deliberate Deprivation of Assets, but if you retain sufficient funds to pay for any care you might need, that's not relevant.

It only tapers if you gift more than the NRB, and even then only to the portion of the gift exceeding the NRB.  

castle96

It only tapers if you gift more than the NRB, and even then only to the portion of the gift exceeding the NRB. 

I still dont get this... So if I gave away £100k 3 years ago, and die now. There is no relief on this. The whole is added into my current estate for IHT yes??. Relief only starts when I have given away more than £325K (and then...different times/amounts. Most people I am sure (like me) think/thought that ANY amounts given, if more than 7 yrs = IHT free, or within 7 yrs, at the reducing/taper amount

km1500

you are correct in the seven-year rule anything you gave seven years ago is now IHT free

tapering allowances only allowed on gifts over the IHT allowance which is either 325 or 500k

so for example if you gave 325/500k away and lived for six years 11 months and none of it would be exempt you would pay IHT on the lot

if the amount was 425/600 then 100k would be tapered

relaxtwotribes

Gift £325k and live for six years and 11 months and all of it will be exempt from IHT.  Because that gift will utilise all of your nil rate

band.

Keep_pedalling

km1500 said:

you are correct in the seven-year rule anything you gave seven years ago is now IHT free

tapering allowances only allowed on gifts over the IHT allowance which is either 325 or 500k

so for example if you gave 325/500k away and lived for six years 11 months and none of it would be exempt you would pay IHT on the lot

if the amount was 425/600 then 100k would be tapered

Where are you getting the £500k figure from? The 7 year rule only applies to the NRB not the RNRB.

Keep_pedalling

relaxtwotribes said:

Gift £325k and live for six years and 11 months and all of it will be exempt from IHT.  Because that gift will utilise all of your nil rate

band.

Yes, but the retained assets would be subject to IHT as the entire NRB would be used by the gift.