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inheritance tax question

(6 Posts)
elastoplast Thu 19-Jun-14 07:17:26

Hello my grandmother has been giving me about 5 thousand pounds a year for the past 7 years as I am an orphan and she has been giving me the money she would have been giving her daughter (my mother) as well as 5k to her other daughter.

She is an elderly lady and I am now worried that I may get taxed on this on the event of her dying.

The total value of her estate is about 150 thousand pounds.

Need I be concerned?

ShouldHaveMarriedTimDowling Thu 19-Jun-14 07:23:03

I might be wrong but I think she can give you up to 6k a year.

LadyIsabellaWrotham Thu 19-Jun-14 07:28:23

If she's giving away 5k to another relative then she'll be judged on the total 10K, minus the annual allowance. On her death it can be back taxed at a tapering scale down to seven years time. However if her estate is only 150K then it will be way below the IHT threshold of 325k even with all the gifts.

elastoplast Thu 19-Jun-14 07:33:34

So as I'm sure that her estate is 150 thousands pounds, I've got nothing to worry about, LadyIsabellaWrotham, is that what you are saying? Sorry, for re-iterating but I need it to be clear.

LadyIsabellaWrotham Thu 19-Jun-14 08:02:11

I think so, yes, but a bit of light googling should confirm.

elastoplast Thu 19-Jun-14 08:06:19

It has confirmed what you say. Thank you.

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