Need advice on who to get advice from.......?

Jiggitty

Not sure where to post this but it's loosely related to investments I guess, if it needs to be moved feel free to move it.

My dad passed away a few years ago and passed his model car collection to my mum in his will, it's about to go through auction and we think it may reach £50k - £60k + which my mum is going to split 3 ways with herself my sister and I. 

I don't know what I'm supposed to do to help minimise tax or to handle tax (mum retired, sister PAYE, I'm self-employed) and I'm not sure if I should be speaking to an inheritance lawyer or an accountant to get said advice.

Could someone put me on the right path of at least who to speak to?

Thanks.

Albermarle

If your Mum , or anyone else, wants to give you money as a gift, then you have no tax liability.
There is no gift tax in the UK.

Where the money originally came from is not relevant .

Jiggitty

really? is there a limit to the amount?

grumpy_codger

Your mum doesn't owe anything after inheriting something from her husband.

Now she is making a gift to you.

MSE: 

Ways to legally reduce your Inheritance Tax bill

Albermarle

Jiggitty said:

really? is there a limit to the amount?

No. Only two points to consider.

1) Once she has given it to you, it is yours. You can do what you want with it.
2) If your Mum has significant assets, her estate maybe liable for inheritance tax when she dies. If she lives 7 years after making this gift, the gift will not be counted in her estate. If she dies within 7 years, it will, but the estate will just be back to where it was before the gift was given.
However for this to work, the gift must be outright, with no strings attached.

grumpy_codger

Albermarle said:

Jiggitty said:

really? is there a limit to the amount?

...If she dies within 7 years, ... the estate will just be back to where it was before the gift was given.
...

I think it's too sweeping simplification: 

• How the seven-year rule works

Keep_pedalling

As above, you don’t need to speak to anyone, there are no tax implications for your mother, your sibling or yourself. 

Jiggitty

OK thanks for all the feedback everyone,  just to be super clear, I don't need to add any info when doing my tax returns? I just take the money and pop it in the bank?

probate_slave

Yes, certainly nothing for you or your sister to declare on your tax return, and you're free to bank the gift.
But note the possibility that CGT may be due on your mother if the model car collection was valued on your father's death and achieves significantly more at auction.

Albermarle

grumpy_codger said:

Albermarle said:

Jiggitty said:

really? is there a limit to the amount?

...If she dies within 7 years, ... the estate will just be back to where it was before the gift was given.
...

I think it's too sweeping simplification: 

• How the seven-year rule works

OK if the gift(s)  are  very large ( over £325k) the rules are different.
However as the OP was only talking about a gift of £60K in total, then I did not mention that.

Jiggitty

probate_slave said:

Yes, certainly nothing for you or your sister to declare on your tax return, and you're free to bank the gift.
But note the possibility that CGT may be due on your mother if the model car collection was valued on your father's death and achieves significantly more at auction.

OK good to know, thanks again.