15th October 2012, 11:07 AM #1
- Join Date
- Apr 2012
Could inheritance tax on my granddaughter's house be paid on a sliding scale?
I recently bought a house for my granddaughter, which is regarded as a potentially exempt transfer for inheritance tax purposes. I am at an age where I cannot be confident of surviving for another seven years. Would a sliding scale for the tax be appropriate in these circumstances?
I live in Scotland, where the regulations could possibly be different.
15th October 2012, 05:48 PM #2
- Join Date
- Sep 2003
- Blog Entries
If you die within seven years of making a PET, the PET is added to your estate to work out how much tax is due on the estate.
If the seven-year running total of PETs, chargeable gifts and your estate comes to less than the unused tax-free allowance, no tax will be due.
If the total chargeable value of all gifts made between three and seven years before death exceeds the inheritance tax threshold at death, you could benefit from "taper relief".
If the gift was made less than three years before death, no reduction in tax is due
If the gift was made three to four years before death, tax is reduced by 20%
If the gift was made four to five years before death, tax is reduced by 40%
If the gift was made five to six years before death, tax is reduced by 60%
If the gift was made six to seven years before death, tax is reduced by 80%
By Questionmaster in forum Ask an expertReplies: 2Last Post: 9th July 2012, 12:05 PM
By Questionmaster in forum Ask an expertReplies: 1Last Post: 25th April 2012, 03:53 PM
By Daily Express in forum Daily Express - forum for readersReplies: 3Last Post: 19th October 2010, 06:40 PM
By Daily Express in forum Daily Express - forum for readersReplies: 1Last Post: 17th March 2009, 11:46 AM
By Zoe in forum Taxing questions and financial planningReplies: 0Last Post: 24th February 2007, 09:52 AM