How the 7 Year Inheritance Tax Rule Works?

[@sukikaur1634]

Very good video thanks for the info ☺️ love the speed of you speaking , l watch all your video s very interesting , God bless you .Suki from Smethwick UK

[@Inheritancetaxadvice]

Thanks for your kind words

[@mrsemme9533]

Thank you for explaining was struggling to understand for my ACCA exam

[@Inheritancetaxadvice]

Happy to help

[@faa8882]

Really good info although I have to watch it twice! Thank you.

[@Inheritancetaxadvice]

Thanks glad I could help

[@MichaelWilliams-lo3ix]

Brillant

[@ajitpatel6798]

Very good Video

[@Inheritancetaxadvice]

Thanks - your comment is appreaciated

[@nafeesasufyan2426]

Well explained

[@Inheritancetaxadvice]

Thanks - that is appreaciated

[@luvk5721]

Thanks for this great video!! 👍 I have a question. If father gave his son 1,000,000 pound cash as gift when he was alived,(assume that like 30 years before die), then how much should he pay taxes? except capital gain tax. I barely understand about iht and tapering relief...

[@Inheritancetaxadvice]

If he lived more that 7 years after the gift no IHT is payable

[@jakemorj5498]

6:50. In theory then, you could have unlimited separate gifts over £3000 that overlap? Since each gift is treated individually for IHT purposes, all that matters is the giver lives for at least 7 years after the precise date each gift was dispersed? But you could have say 4 separate gifts of £7000 in the same 3 years for arguments sake? Thank you

[@Inheritancetaxadvice]

Not exactly - Each gift to a trust is a Chargeable lifetime transfer which are NOT treated seprately for periodic charges ( its complex) However provided the settlor does all the gifts with in a short time frame ( days to months) and the total gifts into all the trusts do not exceed the Nil rate band there are periodic charge advantages. Do NOT implement this type of planning without advice as you will almost certainly get it wrong but negative tax consequesnces.

[@xcskidog6937]

How important is the sequence of gifts ? f the PET is made first and the CLT later, and the donor dies within 7 years of the CLT, is there the same 7 year count back from the date of the CLT ?

[@Inheritancetaxadvice]

Its quite a complex situation and yes there is a countback 7 years after the date of the CLT. If possible always do a CLT first and a PET asap after the CLT is done

[@tarakkhandakar]

Question, dad owed a home worth 800k. Then my dad passed away and didnt use his tax allowance and mother now owns the home. If she sells and gifts me 700k, do I only pay gift tax on anything over 650k? ( ie the 50k) if she passes away within 7 years? Also I heard unused tax allowance can be passed d to spouse?

[@Inheritancetaxadvice]

Sorry but I cannot answer this question without a lot more information as you could end up taking action on my reply which could result in unforeseen problems for your family. If you would like specific help we provide a free 30 minute consultation which you can book on our website

[@king0vdarkness]

just do a gift/pet but then you have to pay cgt right?

[@Inheritancetaxadvice]

Yes when you make a gift of an asset directly it is a disposal for CGT purposes and so CGT is payable