Early Inheritance Gift from a Joint Account

MrsJ1995

Hi,

Wondering if anyone can help with this please. Seems to be a bit of a grey area, from what I've read online.

I received an early inheritance gift of £200k from my grandparents. It came from them both, as a cheque from their joint account. They did the same for my brother.

For Inheritance Tax purposes, how will HMRC deem who the gift was from? Will it be split 50/50, so £100k deemed to come from my grandfather and £100k from my grandmother?

I read that sometimes HMRC look at contributions to the joint account to work out who the gift was from. I.e. if one spouse was working full time and the other was unemployed, then they'd consider gifts from the joint account as coming from the employed spouse only. But I'm not sure how this would apply to my grandparents who are 89 and 93, and have been retired for several decades. The money gifted to myself and my brother was generated from the sale of their house and them then downsizing. The house was jointly owned.

Just needing to know as if one grandparents dies, the combined gifts in full will exceed the £325k tax free allowance. But if only 50% is deemed to come from one grandparent, then the gifts won't exceed the allowance.

Thanks so much in advance for any help!

Keep_pedalling

It will be a joint gift 50% each. 

Newly_retired

If you are concerned about IHT, it is the estate which pays it, not normally clawed back from beneficiaries.