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Original poster

Inheritance tax - gift

59 replies

Confusedretax · 29/01/2026 23:51

If a parent gifts £10k to a child but dies before 7 years how much inheritance tax is due if they carry over the £3k allowance from the year before ? I've done the online calculator and it says no tax is due.

OP posts:
Original poster
Confusedretax · 31/01/2026 10:19

It's very confusing and could be made so much clearer on the government website.

OP posts:
MeridaBrave · 31/01/2026 14:01

Confusedretax · 30/01/2026 20:38

Yes , thank you, we have 2 years of the gift allowance to use so only have to declare £4k.
I still don't get the 7year thing though, especially as when I used the calculator it said no tax to pay, I assumed I would have to pay tax on the £4k .

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The taper relief isn’t relevant unless there was over £325k given BEFORE the gift. The gift uses up the nil rate band

Original poster
Confusedretax · 02/02/2026 15:50

@SleepDeprivedCatSlave I've just read that the NRB of 325k can only be carried over within 2 years of the first spouse's death.

OP posts:
SleepDeprivedCatSlave · 02/02/2026 16:02

No that’s not correct. Can you copy and paste what you’ve read?

SleepDeprivedCatSlave · 02/02/2026 16:08

Ah I think I know what you have read. You have two years, from the date of the second death, to claim the unused NRB from the first death.

Original poster
Confusedretax · 02/02/2026 16:17

SleepDeprivedCatSlave · 02/02/2026 16:08

Ah I think I know what you have read. You have two years, from the date of the second death, to claim the unused NRB from the first death.

Thank you, I was told by the solicitor who quoted £10k that there's a 2 year cut off so went and googled it.

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SleepDeprivedCatSlave · 02/02/2026 16:47

Whereabouts are you OP? My firm charges £750 plus vat to apply for a Grant of Probate in an excepted estate. Plus the court fee on top but you’d be paying that anyway. If you’re not sure what the process is then you might want a firm of solicitors to deal with the probate application and then you can handle the administration of the estate yourself.

caringcarer · 02/02/2026 16:49

CloakedInGucci · 30/01/2026 07:02

I assume the first spouse left everything to the second?
In which case, the second has the full IHT exemption of £375k x 2, so £750k.
If the estate includes their house, that’s another £250k exemption, but you don’t need that anyway.

Sounds like no IHT would be due if the full estate is £570k - provided the first spouse passed on their full exemption. In which case, no need to worry about the gift.

Edited
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I'm sure this is correct.

Original poster
Confusedretax · 02/02/2026 17:04

SleepDeprivedCatSlave · 02/02/2026 16:47

Whereabouts are you OP? My firm charges £750 plus vat to apply for a Grant of Probate in an excepted estate. Plus the court fee on top but you’d be paying that anyway. If you’re not sure what the process is then you might want a firm of solicitors to deal with the probate application and then you can handle the administration of the estate yourself.

That sounds fab thank you , I'll dm you xx

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