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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We've spoken several times about dealing with my late

Customer Question

Hello, we've spoken several times about dealing with my late father-in-law's estate, and you've been most helpful. I have another query:My FiL died in Jan 2015. He left everything to his wife. His wife has gifted a property to my wife and I (without reservation). We moved into the property in Aug 2015 when the gift was made (orally), however the actual Land Registry changes won't show until April 2016.For IHT purposes, when would HMRC consider this gift to have been made? The Land Registry entry date (April 2016), or something else? What documentation would we need to produce if it's anything aside from the Land Registry date?And, will the value our solicitor provided to the Land Registry suffice in terms of valuing the property at a given moment in time?Many thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Given that you and your wife moved into the property in August 2015 and your mother in law said she was giving you the property at that time, that will be the date of the gift. The value of the property at that time should be noted. Your mother in law told you that she was giving the property to you and that should be recorded by her in writing. If HMRC ask for evidence, your mother in law's records will need to be in order. Donors of gifts should keep a record of those gifts so that their executors can make the appropriate disclosures to HMRC when they die. All it needs is a diary entry. The date of the Land Registry entry really doesn't matter if the intention can be proved. I know one or two people who have all gifts recorded by their solicitor but most people don't do that and some don't keep a record at all. It would make sense to have one or two professional valuations of the property as at August 2015 carried out. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Many thanks. Please could I just check one more thing. There was an outstanding mortgage on the property until December 4th, which was paid off from the proceeds of another property owned by the estate. Might this complicate the date when it was gifted to us, as it did have a large mortgage on it in August. So effectively half was gifted in August, the rest in December. Thanks again
Expert:  TonyTax replied 1 year ago.
The assets of an estate cannot really be distributed until all financial liabilities are cleared. The property became unencumbered in December 2015 so that would be a more appropriate date for the gift to be recorded.
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Customer: replied 1 year ago.
Thanks, ***** ***** sense. Out of interest, if I had a series of questions, do you offer consultancy outside of the single question format? You've been so helpful. Thanks
Expert:  TonyTax replied 1 year ago.
I'm not allowed to take on private work through this site I'm afraid. When you ask a question here, you can ask as many follow ups on the same topic and not pay anything extra. If you have a number of questions on different topics within tax, you should post them as individual questions but you can ask that I answer them.
Customer: replied 1 year ago.
That sounds good, many thanks for your help.
Expert:  TonyTax replied 1 year ago.

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