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Where Taxpayers and Advisers Meet

Non UK property gifted to non UK relative

678hug
Posts:3
Joined:Sun Jul 25, 2021 9:49 pm
Non UK property gifted to non UK relative

Postby 678hug » Sun Jul 25, 2021 9:53 pm

Hi,
My mother in law has a property in Barbados and she wishes to gift it to her brother who lives in Barbados.

She lives in the UK and wants to know if the 7 years gifting rule for IHT would apply under these circumstances.

Thanks for any advice.

Gary

maths
Posts:8300
Joined:Wed Aug 06, 2008 3:25 pm

Re: Non UK property gifted to non UK relative

Postby maths » Mon Jul 26, 2021 2:25 pm

Depends upon her domicile status.

If she's UK domiciled the 7 year PET rule applies re IHT.

If she's not UK domiciled then there is no IHT.

Even if she's UK domiciled the nil rate band likely to remove any actual IHT charge on death within 7 years.

678hug
Posts:3
Joined:Sun Jul 25, 2021 9:49 pm

Re: Non UK property gifted to non UK relative

Postby 678hug » Mon Jul 26, 2021 5:16 pm

Thanks so much for your reply. This is a big learning curve for me.

She was born in Barbados but has lived in the UK since the late 50's so i think i'm correct in saying she's UK domecile.
Her husband dies in 1992 and everything transferred over to her so I also think i'm correct that she has an IHT of 2x £350 000.

If this is the case, i think my question has been answered as her assets will not come to anywhere near that amount.

Thanks again

Gary

maths
Posts:8300
Joined:Wed Aug 06, 2008 3:25 pm

Re: Non UK property gifted to non UK relative

Postby maths » Mon Jul 26, 2021 6:02 pm

Yes, your comments are correct. Effectively no IHT payable.

678hug
Posts:3
Joined:Sun Jul 25, 2021 9:49 pm

Re: Non UK property gifted to non UK relative

Postby 678hug » Mon Jul 26, 2021 10:34 pm

Thanks for the confirmations and your advice.
Much appreciated

Gary


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