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 TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15580
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

My daughter wants to transfer £25,000 to her parents,both in

Customer Question

my daughter wants to transfer £25,000 to her parents,both in their 80's to offset the
the need to consider moving into a "home". Other than the £3000 tax free whatis
the tax situation ?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloHer estate may not have to pay Inheritance Tax on assets or money she gave away as gifts while she is alive.She must live for 7 years after giving the gift. Any gifts made less than 7 years before death count towards the Inheritance Tax threshold (£325,000). They count towards the threshold before the rest of her estate.You are correct the estate doesn’t pay Inheritance Tax on up to £3,000 worth of gifts given away by the deceased in each tax year (6 April to 5 April). This is called the ‘annual exemption’.Leftover annual exemption can be carried over from one tax year to the next, but the maximum exemption is £6,000.She would not have a tax situation as long as she lives for 7 years past the gift to her parents.After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.I know rating takes an additional step and I truly appreciate it when you take the extra time!