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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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I have a taxation question. The situation is as follows. My

Resolved Question:

Hello,
I have a taxation question. The situation is as follows. My parents, who live in Germany, would like to gift me roughly £85.000. They would like to transfer this money from Germany to the UK. I would like to use this money towards a deposit to buy property in the UK.
Would you be able to comment on whether and to what degree inheritance tax in the UK is applicable and what rules apply.
Many thanks.
Best regards,
Thomas Matheus
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.

1. Dear *****, Inheritance only applies to you if your parents die within 7 seven years of the making of the gift. Essentially, there is no Gift tax in the UK but Inheritance tax applies as a residual tax where the person gifting the gift does not live for seven years. Essentially, there is a tapering level of tax over the seven years during which the IHT rate reduces to zero over those seven years. It makes no difference that your parents live in Germany. Once you, the beneficiary, are present in the UK you are subject to the British rules.

Expert:  Buachaill replied 1 year ago.

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