Cash gift

[Eeef]

My parents very kindly want to give me a cash gift of £35k. I understand that it won't be liable for IT as long as they survive the gift for 7 years. However, would I be liable for CGT?

[pawncob]

CGT doesn't apply to cash.

Unless they have a potential IHT liability, the seven year term won't apply.

[Eeef]

Sorry, what do you mean the 7 year term won't apply? Their estate will exceed the £650k allowance, so IHT would be relevant I think, so 7 year term does apply?

[AnthonyR]

You gift will take the 'first bite' out of their nil rate band (assuming they haven't made gifts exceeding it yet), so while it will have an impact on the overall estate IHT liability your cash will not be taxed (again subject to them still having at least £35k of nil rate band unused) even if they were to pass away within 7 years.

If they do survive the full 7 years the £35k gift will drop out of their calculations.