Greenwood2
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Post by Greenwood2 on Jul 12, 2023 19:45:33 GMT
Try this www.gov.uk/guidance/work-out-inheritance-tax-due-on-gifts#gifts-with-reservationGifts with reservation If the person who died gave a gift and used it in the 7 years before they died, it is seen as a ‘gift with reservation of benefit’. It is not an outright gift and is not exempt. As an example, someone could transfer ownership of their house to a relative and continue to live in it without paying rent at the going rate. If they continued to use the gift in the 7 years before they died, it counts as part of their estate. It does not matter when they gave it. It is taxed at the market value at the time of their death as if they still owned it.
If they paid rent at the market rate when they gave away their property, they would not have retained a benefit.and after 7 years? fed up of repeating myself to people who dont read. If you have a link to show this please post it. Or are you not in the UK? As far as I am aware if the gift is not an absolute gift, ie, you gift a house but carry on living there rent free it is not considered a real gift for IHT purposes in the UK, however long ago you supposedly gifted it. Monetary gifts and other things you positively pass on to someone with no reservation are just subject to the 7 year taper. I would love to see something that says something different (would suit me), but unfortunately I don't think there is.
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Post by bernythedolt on Jul 13, 2023 1:39:07 GMT
So just coincidence that he went into hospital just as the story was breaking? Unlikely. If you're just about clinging on, something like that is definitely going to tip you over, don't you think? (Certainly to a crisis point, possibly to the point of a suicide attempt...?) I actually feel very sorry for him. He's apparently done nothing criminal, yet the embarrassment factor and the immense pressure he's been under these past few days must have felt unbearable, poor chap. I wouldn't be at all surprised if he's on suicide watch right now. I hope the Sun rag are pleased with their work. Let he without sin cast the first stone.
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benaj
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Post by benaj on Jul 13, 2023 5:56:58 GMT
If they continued to use the gift in the 7 years before they died, it counts as part of their estate. It does not matter when they gave it. It is taxed at the market value at the time of their death as if they still owned it. If they paid rent at the market rate when they gave away their property, they would not have retained a benefit. [/b][/quote] What is the definition of using the gift? Let’s say the person who receives the gift using his second home to “nurse” a homeless person, who is benefiting? I assume the nurse gets paid, the “manager” of the “second home” will gets paid and the “patient” lives free.
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Post by Ace on Jul 13, 2023 6:24:04 GMT
It doesn't matter what the receiver does with the gift. It's the giver that must not have a retained benefit to avoid the IHT.
In your scenario there is no retained benefit as long as the homeless person is not the same person that made the gift of their house.
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adrianc
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Post by adrianc on Jul 13, 2023 6:56:21 GMT
Let he without sin cast the first stone. Well, that certainly ain't the Sun - who, notwithstanding the rest of their list, spent years with a major selling point being sexualised photos of 16yos... including a "countdown" to one particular model hitting that birthday...
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Post by bracknellboy on Jul 13, 2023 9:35:09 GMT
Are you talking about an entirely scenario different to the one we began talking about? Gift the house, pay full rent for 7 years then stop but dont die. Trying to think outside the box here because none of your posts have said as such Nor made the slightest bit of sense.
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Greenwood2
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Post by Greenwood2 on Jul 13, 2023 10:18:59 GMT
Are you talking about an entirely scenario different to the one we began talking about? Gift the house, pay full rent for 7 years then stop but dont die. Trying to think outside the box here because none of your posts have said as such Nor made the slightest bit of sense. Also outside the box: Could you sell the house to your heir and then give them the funds to buy it? The gift is then cash not the house, I guess it's circumventing the rules, but would anyone know 10 years later say. Or sell your house give the proceeds to the heir they buy another house and you live with them there, again who would know ten years later? and would it be against the rules? A risk if they chuck you out obviously. Or buy a small place to live in, then give the main house to your heir, the new place is your designated residence, but you could visit often  .
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adrianc
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Post by adrianc on Jul 13, 2023 11:44:52 GMT
Nor made the slightest bit of sense. Also outside the box: Could you sell the house to your heir and then give them the funds to buy it? The gift is then cash not the house, I guess it's circumventing the rules, but would anyone know 10 years later say. Or sell your house give the proceeds to the heir they buy another house and you live with them there, again who would know ten years later? and would it be against the rules? A risk if they chuck you out obviously. Or buy a small place to live in, then give the main house to your heir, the new place is your designated residence, but you could visit often . All the same difference for IHT. Gifts <£5k/year - cash or asset - are outside the estate for IHT. Above that, they taper over 7yrs. And they're the same difference for deprivation of assets for care costs, too.
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james100
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Post by james100 on Jul 13, 2023 12:14:39 GMT
ilmoro already posted the link on detail...the key allowances are set out here: www.gov.uk/inheritance-tax/giftsThe big one that most people miss is the the theoretically unlimited giveaway of regular payments from excess income, in addition to other allowances, which is not subject to the 7 y rule at all.
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Post by overthehill on Jul 13, 2023 12:35:11 GMT
and after 7 years? fed up of repeating myself to people who dont read. Not half as fed up as we are. Perhaps you should try understanding instead of just reading!
Life and death is much simpler if you spend everything above 325k on drink and women, or 500k if you own a house and have children, or 1000k if you are also married. So I'm told!
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agent69
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Post by agent69 on Jul 13, 2023 14:44:20 GMT
So just coincidence that he went into hospital just as the story was breaking? Unlikely. If you're just about clinging on, something like that is definitely going to tip you over, don't you think? (Certainly to a crisis point, possibly to the point of a suicide attempt...?) I've not seen anything to suggest he was 'just hanging on' immediately before the sticky brown stuff hit the fan. Looking at the links you provided above it appears that he has suffered from depression on and off for a long while, but only in a sever form a few times over the last 20 years. These more serious episodes do not appear to have needed hospitalisation.
It wouldn't suprise me if he isn't feeling too chipper at present, but I suspect that being in hospital is a convienent way of avoiding the media until the worst of it blows over, and he can come out with his side of the story.
There may not be a law against a rich and famous 60 something procuring indecent images from an 18yo, but most would find it distasteful.
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michaelc
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Post by michaelc on Jul 13, 2023 16:30:04 GMT
Aggressive Liberals have never liked anything about China but are no doubt ok with buying most of their consumer products from them. If China was to immediately stop exporting anything to the UK we'd be in very bad shape. Even the language - "penetration" when referring to trade and co-operation is disturbing. Do these Liberals not ever want some kind of world where we can all trade cooperatively and peacefully? Imagine the economic boost that would bring. But "no", we have to forever have some foe we have to compete with (at best). www.bbc.co.uk/news/uk-66189243 |
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Post by bracknellboy on Jul 13, 2023 16:37:39 GMT
Also outside the box: Could you sell the house to your heir and then give them the funds to buy it? The gift is then cash not the house, I guess it's circumventing the rules, but would anyone know 10 years later say. Or sell your house give the proceeds to the heir they buy another house and you live with them there, again who would know ten years later? and would it be against the rules? A risk if they chuck you out obviously. Or buy a small place to live in, then give the main house to your heir, the new place is your designated residence, but you could visit often . All the same difference for IHT. Gifts <£5k/year - cash or asset - are outside the estate for IHT.Above that, they taper over 7yrs. And they're the same difference for deprivation of assets for care costs, too. £3k p/a unless I'm missing something.
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Greenwood2
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Post by Greenwood2 on Jul 13, 2023 16:48:56 GMT
Aggressive Liberals have never liked anything about China but are no doubt ok with buying most of their consumer products from them. If China was to immediately stop exporting anything to the UK we'd be in very bad shape. Even the language - "penetration" when referring to trade and co-operation is disturbing. Do these Liberals not ever want some kind of world where we can all trade cooperatively and peacefully? Imagine the economic boost that would bring. But "no", we have to forever have some foe we have to compete with (at best). www.bbc.co.uk/news/uk-66189243Takes two to tango (or more).
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adrianc
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Post by adrianc on Jul 13, 2023 16:58:20 GMT
All the same difference for IHT. Gifts <£5k/year - cash or asset - are outside the estate for IHT.Above that, they taper over 7yrs. And they're the same difference for deprivation of assets for care costs, too. £3k p/a unless I'm missing something. You're right, I misrecalled.
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