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Where Taxpayers and Advisers Meet

Will I owe any tax on this?

tomatoFan
Posts:2
Joined:Mon May 27, 2024 9:07 pm
Will I owe any tax on this?

Postby tomatoFan » Mon May 27, 2024 9:53 pm

<t>Hi,<br/>
<br/>
Any help appreciated with this question.<br/>
<br/>
After the death of my father, my mother wants to give me part of my inheritance early, a sum of £30,000.<br/>
<br/>
I'm aware of the 7 year inheritance tax rule, and that I can be gifted up to £3,000. Am I liable for any other taxes if given this money now?<br/>
<br/>
I'm a higher tax rate payer, if that's relevant.<br/>
<br/>
Also, would I need to declare the money on my self assessment return?<br/>
<br/>
Thanks!</t>

AGoodman
Posts:1797
Joined:Fri May 16, 2014 3:47 pm

Re: Will I owe any tax on this?

Postby AGoodman » Wed Jun 05, 2024 2:39 pm

I'm aware of the 7 year inheritance tax rule, and that I can be gifted up to £3,000. Your mother can give you whatever she wants. The £3,000 is just an annual immediate exemption.

Am I liable for any other taxes if given this money now? No, and almost certainly never will be. It will be exempt if your mother survives for 7 years and absorbed by her estate's nil rate band if she doesn't. Worst case, if she has a large estate (it may need to be over £1m depending on a number of factors) her estate's inheritance tax would be increased.

I'm a higher tax rate payer, if that's relevant. It's not (that only relates to income tax/CGT)

Also, would I need to declare the money on my self assessment return? No

tomatoFan
Posts:2
Joined:Mon May 27, 2024 9:07 pm

Re: Will I owe any tax on this?

Postby tomatoFan » Fri Jun 14, 2024 12:02 am

Hi AGoodman, thanks for the response, much appreciated.


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