Inheritance Tax - The 7 Year Rule - What is it?

Kimberley Shapcott Property Tax and Accountancy

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As a Property Investor, we gather assets so Inheritance Tax is likely to be a question we have to deal with. How do we reduce our estate during our lifetime to reduce the impact of this final tax hit.
The 7 year rule is a great way to manage your inheritance tax and mitigate any tax payable.
In this video you will discover:
What is the 7 year rule?
When can you use it?
How does it work of you don't live for 7 years?
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DISCLAIMER: Please be advised that the content of my media is my personal opinion and is intended FOR GENERAL INFORMATION PURPOSES ONLY, not specific tax advice. Nothing herein shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker. Making decisions on your tax position and investment decision is your own and appropriate specific targeted advice from a qualified accountant or tax advisor should be sort. The speaker will not be held responsible for any losses or gains based on decisions made following watching this video. Always do your own research and seek advice from an appropriately qualified professional.
#property #propertytax #propertyinvestment #accountants #taxadvisor #shapcottsaccountants #believepropertyltd #inheritancetax #inheritance #Probate #Inheritanceandlandlordtax #Landlord
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Опубликовано:

25 мар 2023

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Комментарии : 12

@adwoa237 3 месяца назад

Hi, how would HMRC know about PETs? Does someone crawl through the bank transactions of family members?

@kimberleyshapcottpropertytax 3 месяца назад

The executors of the estate are required to review this as part of valuing the estate and making the appropriate reports to HMRC. The PETs can be seen on bank transactions or any notes that have been made for inheritance tax purposes.

@Cool_Kids_Animate 2 месяца назад

Hi, Great video thanks. Quick question, if you use the 325k allowance within the 7 year rule does this just mean you don’t have that allowance once the person gifting has passed away? Or is there a fresh 325k allowance? Thanks

@kimberleyshapcottpropertytax Месяц назад

You won't have it when they pass away if has already been used.

@graemehoward-kinsley9083 Месяц назад

If parents gift a jointly owned second property to daughter and only one parent survives the 7 years does any PET return to estate?

@kimberleyshapcottpropertytax Месяц назад

The 50% from the person who did not meet the 7 year rule would be clawed back. However, the tax charge will depend how many years through the period would determine the tax on the 50% of the gift.

@sssfff 9 месяцев назад

Hi, if I gift my son a house that has been rented out, and he moves in, as his main residence, then sell the house in a year or two, will he be charged with CGT or Inheritance tax? Will he be able to use the Private residence relief and the main residence relief to mitigate the amount taxable? thanks for your advise.

@kimberleyshapcottpropertytax 8 месяцев назад

He will be able to claim PPR most likely, however on gifting the property you will be liable to CGT and it falls within inheritance tax rules if you don't survive for 7 years following the gift. Your son's position is quite simple in this example. The complicated element is yourself as you will be liable to taxes although have received no funds to enable you to pay them.

@mikeroyce8926 Год назад

Thanks for this Kimberley. Is it the case that if I make a gift to a trust, then if I make any more gifts above £250 (apart from gifts of the £3,000 allowance and gifts out of income) to a person or a trust in the next 7 years, then it cause the 7 year rule to start again on the original gift to the trust?

@kimberleyshapcottpropertytax Год назад

There are some specific timings with gifts into Trusts and the 7 year rule. I would recommend getting advice to ensure you don't fall into any traps and gifts fall within the 7 year rule. Some lifetime transfers will incur inheritance tax depending what you are transferring so there are a few pitfalls to avoid.

@annabellebloomfield9913 10 месяцев назад

How much inheritance tax if half of the property was given to charity? The person gave the gift died after 2 years? Can we reduced more because of charity?

@kimberleyshapcottpropertytax 9 месяцев назад

If 10% or more of the estate is gifted to charity then this will reduce the inheritance tax rate to 36% instead of 40%.