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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My Grandma wishes to gift me £50,000 in order that I can start

Resolved Question:

My Grandma wishes to gift me £50,000 in order that I can start my own business. Instead of leaving the money in her will she wishes to give it now. She has no other assets, does not own any property, and only has a few thousand pounds in the bank - so is well under the £325,000 inheritance tax threshold. I just wanted to check whether there would be any tax implications for either her or me if she gifts me the money. Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

The recipient of a gift does not pay tax on it. Whilst it will be a gift for Inheritance Tax purposes, given that your Grandmother's estate will be well under the nil-rate band of £325,000 there should be no IHT problem should she pass away within seven years of making the gift to you.

If your Gran is a widow, her executors will be able to make an application to transfer the unused part of her late husband's nil-rate band to herestate as you will read here.

I hope this helps but let me know if you have any further questions.
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