Tax on gifts?

[Wishicouldthinkofagoodone]

I was lucky enough to receive a couple of significant cash gifts from my parents over the last few of years.

my daughters also received fairly substantial amounts -one for a house deposit, one for a wedding.

someone has commented on the work I’ve had done do my house and when I mentioned the money was a gift said I need to declare gifts over £3k to HMRC?

is that right? Should I be paying tax? They also mentioned should I sell the increase will be subject to CGT?

one of my parents has since died, should it also be declared for IHT?

You don't have to declare it - but whoever is dealing with your dad's estate should note the gifts made to check if the estate needs to pay any taxes. Gifts given in the 7 years up to death might result in IHT depending on amounts involved and the amount of time since the gift.

No the only liability is for those over the annual limit if the donor dies within seven years. If so it may be treated as part of the estate for IHT. There are some exemptions for wedding gifts etc.

Thank you!

I am the executor, and because everything is left to the other parent I don’t think I need to do probate or iht etc. the iht allowance will go to my remaining parent and probably won’t exceed the limit.

i got a large amount last year, my child got a house deposit in 2021, so definitely within 7 years.

my siblings are asking for the accounting. I’m a little embarrassed as they did not get anything- I’m a single parent and desperately needed the money, they are both in good jobs, with husbands/wives in good jobs, and their kids are still under 12. I’m sure my parents meant to even it up later, but still, it could cause an awkward situation.

Can surviving parent not make a will to redress the balance?

www.gov.uk/inheritance-tax/gifts

You need to declare the gifts in the last 7 years as part of probate/ estate accounts. They will erode your Dad’s £325k inheritance tax threshold. https://www.gov.uk/inheritance-tax/gifts

If your siblings are not executors nor are they residual beneficiaries I don’t believe they are entitled to a copy of the accounts.

Having said that I would question the family relationships where parents have not been open about gifts to one child and not others. Often the secrecy is a far bigger issue than the gifts.