Re: Accountancy Types...question for you Archived Message
Posted by McConville on December 5, 2023, 9:26 pm, in reply to "Accountancy Types...question for you"
The savings interest is income to the in-laws and they are liable for tax on it, even if they gave it to you. You don't pay tax on it Catch is when they die the HMRC will look at gifts made in the prior seven years and try to determine whether they had given capital away reducing their estate. If they gave you the savings income but then burned through their savings to make ends meet then the gifts might be added back to the estate (increasing the inheritance tax bill) If on the other hand their pensions were covering all their expenditure and the savings income was surplus then the gift might not be added to the estate. Complicated rules though so if we are talking big numbers have them keep detailed records and get proper advice
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