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forgive me but some of the terminology is lost on me.
First of all, what does 'added to the estate' mean exactly?
what does 'outside the scope' of UK taxation for the recipient mean?
Also, yes IT is levied at 40% flat rate over the limits so yes the 20K IT bill is the 40% of the £50,000....is that correct?
I am pretty basic with this sort of thing.... In a nut shell then, if my Mum was to share/gift cash to my sister and myself next week, for example, £100,000 to each of us, a total of £200K, then a) if she survived the 7 years would that be then subject to tax of 40% ? if she dies before the 7 years, then is this is a taper situation.... and therefore a sliding scale?
Sorry to ask for a more basic explanation . thanks
Thanks.. I appreciate this so much
So ... If my Mum gave us the 200k between us, and she died within the first 3-4 years, the PET would be 20%
This makes the add back ( the taper added back on ) 20%
So , 20% of the total 200K would be 40k.. is that correct? So its the 40k therefore that is exempt from tax?
Or the 40k that is given back to us?
sorry I am nearly there with this... Never been great with numbers.
Thank you. I may have some other questions around this sort of tax, and also property tax..... Hopefully the cover I have bought will support this too
have a lovely evening
Hi ... I am not sure if I have any credits left ... however I have another question regarding my mums estate/tax/care home fees. Is it true that when / if my mum needs to go into a care home, that unless she gifts the money to me and my sister (all of her assets) then she will pay her own care home fees out of her estate. and if not, then the state pays for her fees? Do you have any more information about this please? Also, can my mum 'sell' her home to me and my sister so that we have her home in our name, saving us from having to sell the house and pay for the care home fees out of the property value? Thanks
I see so getting in touch with the local authority is the way forward to check on rules and regulations.
If she did for example she did not have a property of her own, but just had cash in the back, then would they take the cash she has in the bank to pay for her care? Also,I am assuming that they will check her bank for the cash ? Thanks again
So really, then regards of cash she has in the bank, they will go mainly by the value of the property and whether or not she owns it ? I don't know how they would access her bank details or collect information about her assets in general. I don't know if this is possible. Can they check on this also? OR is this a case of us declaring these things to the local authority ? Thanks
I get your drift !