I know i'm bitter but can they do this????

ds1980 · 17 June 2008 at 3:17PM

NOw before I start I don't care what house prices are doing so please dont speak to me about this isnt a good time to buy as it makes no difference to us.

So we made an offer for a house at the weekend with apparently two others. We are chain free and large deposit but do need a mortgage. ANother one needed to sell but rang back saying that parents were sorting something?

Monday comes and EA rings to say the vendor is mulling over the 2 offers not 3 so something a miss there.

We were called to day to be told that the other people were now going to be cash buyers with the money from their parents? Now I know I'm a bit bitter but I didn't think this thing was allowed as it could be IHT avoidance etc?

Would anyone be able to shed the light on whether this is possible but i'm missing something?

I do think there is something else to why we didnt get it (EA has bought it themselves) but I don't think I could find out! I'm sure theyll be more so we'll bide our time but I look at a lot of property and this one was the most perfect we'd seen and cheap!!!

Anyway rant over.

wolfplayer · 17 June 2008 at 3:20PM

There are plenty more dream properties waiting for your offer.

Don't let this one trouble you. And who knows, their buyers might pull out and the EA will be back on the phone trying to sweet-talk you.

bobby-boy_2 · 17 June 2008 at 3:24PM

Hi Dds1980 IHT AVOIDENCE is perfectly legal. Why give the government 40% of your estate when you can give it to your kids when you alive?

The parents of the buyers have done nothing wrong so yes you are being a little bitter as it is perfectly allowed.

m00m00 · 17 June 2008 at 3:45PM

it's only considered for inheritance tax purposes if the giver dies within a set period (8 years I think)

bobby-boy_2 · 17 June 2008 at 3:48PM

Hi MooMoo its 7 years and its a sliding scale up to that point ie if 3.5 years between gift and death then only 50% of gift is calculated back into estate. The parents can give 3K every year (6k if no gift previous year) with no IHT liability.

ds1980 · 17 June 2008 at 3:55PM

You are only allowed to give £3000 per year as a gift which is free of iht. £3000 more if you havn't done so before.

My feeling is to be honest is that its all !!!!!!!! and the EA is buying it through someone but hey ho. I did tell them when they ring me in a couple of weeks my offer would be considerably less.

Thanks anyway.

Having time to reflect im not bitter really we live rent free at the minute in our lasses mum and dads mansion house. We eat out in fancy restaurants whenever we like i buy the best wine ive just bought a new sports car we are going to the carribean in a week and another 4 holidays before the years out we have money in the bank im getting married next year oh and ive just won £400 on henrythenavigator. Must dash.

Kez100 · 17 June 2008 at 4:07PM

You can give as much cash away as you wish. However, only 3000 (or 6000 if you gave nothing last year) is immediately IHT free. In other words, if they give them 100,000 today then 3,000 (or 6000) is IHT free today and the rest will be added to their estate for IHT tax purposes if they die within seven years (although between 3 and 7 years there is a sliding scale). They can still give them 100,000, or 1,000,000, if they fancy. If the money is theirs there is no law against it.

You are bitter and shouldn't be. There are millions more houses out there and they may be lying to get their offer accepted anyway; you hear of that sort of thing happening all the time.

clutton_2 · 17 June 2008 at 4:31PM

""We eat out in fancy restaurants whenever we like i buy the best wine ive just bought a new sports car we are going to the carribean in a week and another 4 holidays before the years out we have money in the bank im getting married next year oh and ive just won £400 on henrythenavigator. Must dash.""

well if things are that rosy then up your offer !!!!!

Kez100 · 17 June 2008 at 4:33PM

I think it'll be hard to rein in that lifestyle for a mortgage. Probably best to stay with the outlaws andlive the life of Reilly.

moneysavinmonkey · 17 June 2008 at 4:39PM

ds1980 wrote: »

Having time to reflect im not bitter really we live rent free at the minute in our lasses mum and dads mansion house. We eat out in fancy restaurants whenever we like i buy the best wine ive just bought a new sports car we are going to the carribean in a week and another 4 holidays before the years out we have money in the bank im getting married next year oh and ive just won £400 on henrythenavigator. Must dash.

wot you doing on this website then?? :rotfl: