7 year rule for IHT

Keep_pedalling

makemineapint said:

Albermarle said:

theartfullodger said:

But when end date ?? Depends on rules/law over IHT - which may well change ove the up-coming years (e.g. 7 years could be reduced to 4 years 01/02/2026.... 

The country is going to need more tax income, Trump etc etc, IHT an easy target...

More likely to be extended to 10 years I would think, as that would potentially bring more money in.

OP - Tapering only applies where a gift is more than your NRB, and only to the amount above it.
So if the gift from you ( half of the value of the house) is less than £325K, then no taper will apply and if you die after 6 years and 11 months , a 100% of the gift will be counted back into your estate.

We had better live for more than 7 years then lol, just so much involved In trying to help your kids..hopefully the IHT threshold will still be above£325k for each of us. 

One option to consider is to take out term life insurance that will pay out enough to cover IHT should you die within 7 years of making large gifts. 

Bigphil1474

If you are a couple , your IHT threshold will be £1m (£500k each) if it involves giving a property to your kids. You need to make sure your residual estate is less than £400k if the house is worth £600k - i.e. more partying, expensive holidays, and fast cars .