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Cash gifts

2 replies

Crikeyalmighty · 25/11/2024 12:36

I've googled this but still unsure of answer- a relative is very likely to be offering us £20 to £30k or so in next few weeks.

They are old but still a long way under the IHT thresholds counting all assets ( and we know these ) even if we factor back in the gifts , as their spouses limit wasn't used at all when they died

If IHT isn't due or payable at the point of them passing - even allowing for factoring back in the gifts - would the gifts still be subject to IHT? I would have thought not , but all articles point to the same subjects of 7 years, £3k limits annually and IHT-

I do understand the different scenarios with deprivation of assets though which is separate thing , although as it stands they are fit and well , no care needs etc and have money in assets for quite a lot of years care if needed be it at home or otherwise ( mid 80s)

Also do these gifts count towards income tax due? It doesn't seem as if they do on googling.

OP posts:
Fourmagpies · 25/11/2024 13:08

The allowances etc still apply as you need to include them when working out what is in the estate. The gifts will count in the estate when working out if IHT is due (if they die within 7 years) but if the estate is below the threshold, there is no tax to pay.
No income tax on gifts.

Crikeyalmighty · 25/11/2024 13:40

Thank you - yep I understand now -

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