How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I was given a gift of £50000 by my father in october 2011.

Resolved Question:

Hi. I was given a gift of £50000 by my father in october 2011. He passed away on 28th december 2015. Two questions.
1.Should I have payed any income tax as the money was already taxed before it was gifted.....or
2. Do I declare this as a gift on the probate forms....I understand that the HMRC have a decreasing scale up to 7 years (4 to 5 +24%)
Just need some ressurance.
Many thanks
Steve
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.Please accept my condolences on the demise of your father. First of all, gifts are free of tax in the hands of the recipients.There is no tax payable on the gift.As you father passed away within 7 sevens of giving the gift, the gift is a potentially exempt transfer.Provided your father's estate does not exceed the threshold for IHT purposes (£325,000 currently) inculding this or any gift within the past seven years, then there is no IHT payable.If the estates exceeds the theshold with gifts taken into account then this gift would be liable to IHT at decreasing scale.It would have to be declared as a gift.I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

Related Tax Questions