Mother in law selling house.
26 July 2018, 08:25 PM
#1
Mother in law selling house.
My wifes mother is selling her house,she is 83 and is now going into a rented bungalow by the sea.
Her home is worth £400k ish and there is no mortgage.
Will she get taxed on the sale at all ?
When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ?
Any info appreciated.
Ta
Her home is worth £400k ish and there is no mortgage.
Will she get taxed on the sale at all ?
When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ?
Any info appreciated.
Ta
26 July 2018, 08:35 PM
#2
My wifes mother is selling her house,she is 83 and is now going into a rented bungalow by the sea.
Her home is worth £400k ish and there is no mortgage.
Principal private residence relief, No Tax on her sale
Will she get taxed on the sale at all ?
When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ?
Its called a PET (potentially exempt transfer) .As long as your Mother in-law survives after giving the money more than 7 years, there is no inheritance tax. if she only survives between 3 and 7 years then there is a sliding scale of inheritance tax.
She will have £325,000 nil rate band on her estate, so there might be no inheritance tax if her estate is less than when she dies
Any info appreciated.
Ta
Her home is worth £400k ish and there is no mortgage.
Principal private residence relief, No Tax on her sale
Will she get taxed on the sale at all ?
When the sale goes through,she wants to give some money to my wife and her 2 brothers,whats the situation with regards to this ? She has been advised she just cant "give money away" ?
Its called a PET (potentially exempt transfer) .As long as your Mother in-law survives after giving the money more than 7 years, there is no inheritance tax. if she only survives between 3 and 7 years then there is a sliding scale of inheritance tax.
She will have £325,000 nil rate band on her estate, so there might be no inheritance tax if her estate is less than when she dies
Any info appreciated.
Ta
26 July 2018, 10:24 PM
#6
My father in law died 2 years ago if that makes any difference
it’s her only house and she had lived in it for 20+ years
Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info.
So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years?
Sliding scale of tax between 3-7 years
it’s her only house and she had lived in it for 20+ years
Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info.
So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years?
Sliding scale of tax between 3-7 years
27 July 2018, 12:46 AM
#7
Scooby Regular
My father in law died 2 years ago if that makes any difference
it’s her only house and she had lived in it for 20+ years
Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info.
So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years?
Sliding scale of tax between 3-7 years
it’s her only house and she had lived in it for 20+ years
Thanks for the info about the PET..thats interesting so will have a read about it if I can find some info.
So basically she can give her siblings whatever she wants, but taxation will apply if she does within 7 years?
Sliding scale of tax between 3-7 years
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27 July 2018, 09:36 AM
#8
I dont believe there is a time limit on the inheritance from the death of a spouse. Always conform info with a solicitor, but my grandad passed away last year so my dad had to go through the process, my gran died many years ago (10+ at a guess) and there wasnt any inheritance tax due because it was a double estate.
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