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Where Taxpayers and Advisers Meet

£3000 gift help

Robert9
Posts: 1
Joined: Thu Nov 28, 2019 10:07 am

£3000 gift help

Postby Robert9 » Thu Nov 28, 2019 10:35 am

Can anyone with any expert knowledge help please?

My 94yr old father It appears, will have a inheritence tax threshold of £950k.
Thats £325k for himself, the same for my late mother who left everything to him, and £150k each for his house.

His entire estate is valued at £860k, which includes the value of his house (£330K) and investments including ISA Funds and ISA Stocks and Shares valued at £280k. The remainder being in other investments.

He wants to gift his 3 sons £50k each, my question is, is he able to do this from his ISA investments without any tax implications, such as the £3k gift rule bearing in mind he is below the current inheritence tax threshold?

Thanks

pawncob
Posts: 4506
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: £3000 gift help

Postby pawncob » Thu Nov 28, 2019 1:28 pm

He can't gift the ISA, he'll have to sell the shares and gift cash.
The £3k annual exemption doesn't matter. The gift is a PET(Potentially Exempt Transfer) so no IHT implications.
With a pinch of salt take what I say, but don't exceed your RDA

Harry9
Posts: 9
Joined: Mon Dec 10, 2018 12:49 pm

Re: £3000 gift help

Postby Harry9 » Thu Nov 28, 2019 2:02 pm

Thank you, that was what I meant he would sell the ISA shares, it was just worded badly.

Thanks for the reply !


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