Thanks for your helpful reply. Could I just clarify that if the PET is taxed on the amount over the IT threshold, would it be the amount over 325K, or whatever the IT threshold is at the time (say if that year's IT threshold had been increased to 340K, would it be on the amount over 340K, for example?). And also, would we have to inform HMRC of the money transfer, or would it be picked up when the estate is valued?
Thanks again for your helpful reply. I was just thinking, would it be a good idea to use the yearly tax limit for 2012-13, and 2013-14 in a cheque for £6000, and then use the tax free limit for 2014-15 as a cheque for £3000, and then a further cheque for £11,000?
p.s. I've left good feedback for you, as your replies have been helpful to me.
The gift is only added back at the appropriate taper level if a PET has been crested and the death takes place within 7 years of the gift. If your father's estate on decease is under 325K then there is no Inheritance Tax anyway. I cannot advise you on your sister's feelings, I am not Marjorie Proops! I do hope that helps for what it is worth.
For the moment I would advise you to emulate Brer Fox, 'For he lay low and say nuffin!'
Yes, but time will erode the problem!
Delighted to have been of assistance.