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, Tax Consultant
Category: Tax
Satisfied Customers: 17613
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

Mum is selling the family home to my sister,I will be receiving

This answer was rated:

Mum is selling the family home to my sister,I will be receiving half of the sale price and mum will still live there after alterations will I have to pay any tax on my share
Your mother can gift you the money and as long as the 7 years expire prior to her passing, the amount will not be under taxation.
Any gifts that someone makes to individuals will be exempt from Inheritance Tax as long as they live for 7 years after making the gift. These sorts of gifts are known as 'Potentially Exempt Transfers'.
If the giver dies within 7 years and the total value of gifts they made is less than the Inheritance Tax threshold, then the value of the gifts is added to their estate and any tax due is paid out of the estate.
If they die between 3 and 7 years after making a gift, and the total value of gifts that they made is over the threshold, any Inheritance Tax due on the gift is reduced on a sliding scale. This is known as 'Taper Relief'.
Inheritance Tax is only owed if the value of the deceased's estate - or a transfer in connection with a trust - exceeds the Inheritance Tax threshold (£325,000 in 2014 to 15 tax year).
You would not owe tax on the gift made to you from your mother. A beneficiary or donee only has to pay Inheritance Tax if they receive a gift from someone who dies within 7 years of making the gift and the estate can not pay.
Customer: replied 3 years ago.
I expect the amount to be less than100k so to clarify she can gift me this and I don't owe anything but if she were to die within 7years a fee would become payable
Hello again,
You are correct, you will not pay tax on the gift. If she were to pass before 7 years and her estate is valued at more than the Inheritance Tax threshold (£325,000 in 2014 to 15 tax year), the estate or you (if the etsate could not would pay) would owe some tax.
TaxRobin and other Tax Specialists are ready to help you