inheritance before death

[d24506291r]

how much is my mum allowed to give her children when she sells her house and moves in with her partner.

[Catso]

As much as she wants to, but it will be subject to tax. I think it's currently �3k she can give away (per year) and be tax free.

[Catso]

I should clarify: if you mother dies within 8 years (I think), then anything she's given away will be subject to some degre of inheritance tax, restropectively. Up to �3k pa will be tax free.

The recipient will be subject to capital gains tax once they pass the CG threshold (about �9k, currently, I think)

[Catso]

If you're talking a lot of money here, she should go and get some tax advice on the most effective way to give it. No sense in sharing it if you don't have to ;-)

[jake-the-peg]

See if this helps:
http://www.hmrc.gov.uk/leaflets/iht3.htm

[dzug]

As much as she wants to, and despite what is said above, it is NOT subject to tax.

There is the potential for inheritance tax if she dies within 7 years of making the gift. Once that 7 years is up, no tax.

[dzug]

Sorry pressed send too soon

Once it is in the hands of the recipient, they are of course liable to tax in the normal way - eg if it's invested, the interest is taxed.

But the gift itself is not liable to tax at the time of giving.