Hi I hope someone can help clear this up for us:-
My 87 year old mother and her 5 children are a little confused by the available advice online regarding making gifts of money & Inheritance Tax etc.
The value of her estate currently stands at £128,000 in property; £95,000 in cash/savings and around £1000 in shares making a grand total of £224,000 which is obviously less than the £325,000 IHT threshold.
She wishes to make a gift of £5,000 to each of her 5 children now ie £25,000 in total BUT she understands that her 'Annual Allowance' is only £3,000 total? [or £6000 if she's able to carry the allowance forward one year]
Question 1) - As she is some £100,000 short of the IHT threshold [& this is very unlikely to change in the foreseeable future] will she be OK to make the £25,000 gift to her children without us worrying about the IHT situation or does the £3000 annual allowance still apply to her situation?
Question 2) - if OK from IHT point of view, will each of the children then need to declare the £5000 gift to HMRC?
Thanks
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch