IHT & CGT help please
KaelaH
Registered Posts: 131 Dedicated contributor 🦉
I have no experience in either of the above but have been asked by a member if my family if there are any tax implications on this situation :
The lady in question has helped out her son who had got into serious debt. Initially paying £5000 to clear his overdraft and £13k to pay off credit cards, this was back in 2009. Last year she then found out that he was back in debt so paid off his car loan to the tune of £25k in 2010. Where, if any, is there anything to declare please??
The lady in question has helped out her son who had got into serious debt. Initially paying £5000 to clear his overdraft and £13k to pay off credit cards, this was back in 2009. Last year she then found out that he was back in debt so paid off his car loan to the tune of £25k in 2010. Where, if any, is there anything to declare please??
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Comments
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Iht
Hi Kaelah
I'm not an expert on IHT but my understanding as far as it goes is:
If the lady dies within seven years of the PET's (gifts of money) and her estate is over the IHT threshold then there is IHT to pay on some of the PETs. The amount due decreases over time so if the lady dies 6 months after giving a gift then there would be more tax to pay than if she died 6.5 years after giving the gift.
Here are a couple of factsheets which might be useful
http://www.friendsprovident.co.uk/doclib/ctst26.pdf
http://www.friendsprovident.co.uk/doclib/ctst44.pdf
Hopefully more experienced posters can shed more light or correct me if wrong.0 -
Unless they were normal gifts out of income or part of an established pattern of giving or if the executors choose to completely ignore them (surely not..).0
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Just a quick note to say there is a IHT/CGT presentation in the elearning CPD section, I don't do IHT either but watched the presentation to get the basics down.0
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