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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 31343
Experience:  International tax
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A question re inheritance tax - am I right in thinking of I

Customer Question

A question re inheritance tax - am I right in thinking of I have a company that any Properties used in the business don’t have to be sold to pay inheritance tax? My daughters who would be the beneficiaries are company directors too along with me?Also can I gift a peppery to them
Now what tax would be payable ?
Submitted: 11 days ago.
Category: Tax
Customer: replied 11 days ago.
Sorry there was a typo in that last part of the message - it was what would the tax position be if I gifted (and can I do that) a property to my daughters?
Expert:  TaxRobin replied 11 days ago.

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died. If you passed and your estate did not have the funds to pay yes, any thing you owned could be sold. The property that the company owns is not included.

If you give them property now and you pass away within 7 years they will pay tax on the value of the gift.

Expert:  TaxRobin replied 11 days ago.

No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.

If you die within 7 years of giving a gift and there’s Inheritance Tax to pay, the amount of tax due depends on when you gave it.

Gifts given in the 3 years before your death are taxed at 40%.

Gifts given 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.