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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10459
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Me again! A couple more questions. If my parents gifts

Resolved Question:

Hi Me again!
A couple more questions.
If my parents gifts me the 600k. Would that affect my tax in the year it was given or would the tax only be relevant on their death?
Thanks
James
Submitted: 1 year ago.
Category: Law
Expert:  Aston Lawyer replied 1 year ago.

Hi again,

It would only become an issue if they were to die within 7 years of making the gift.

So, no tax is payable at the date of the gift, but if they were to die within 7 years, then tax would become payable if their Estates were liable for Inheritance tax.

I hope this clarifies the position.

Kind Regards

Al

Customer: replied 1 year ago.
Thanks - even if they live in the house? Great if so.
Expert:  Aston Lawyer replied 1 year ago.

Hi,

I do apologise- I have just re-read your original question.

As your parents woyuld be living at the property, the 7 year rule would not apply, and tax would be payable as and when they died, whether it be in 7 or 27 years time.

I do apologise for misleading you earlier.

I can, however, confirm, no tax is payable at the date of the gift- it only becomes payable when anything were to happen to your parents.

Kind Regards

Al

Customer: replied 1 year ago.
Many thanks
Expert:  Aston Lawyer replied 1 year ago.

Thanks.

I would be grateful if you could leave positive feedback.

Kind Regards

Al

Customer: replied 1 year ago.
Would the sale of their house (owned outright) attract any income tax? Or CGT for them to pay ?
Expert:  Aston Lawyer replied 1 year ago.

Hi James,

No income or capital gains tax would be payable on the Sale of your parents house-

Capital gains is only payable if it is not your principal place of residence.

Kind regards

Al

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