Question:
The property would be in mine and my husband's name only. If either party does have to pay tax, what tax is it and how much? What is the best way to avoid it?
Arthur Weller Replies:
Gifting cash to another individual is called (with respect to Inheritance Tax (IHT)) a ‘potentially exempt transfer’ (PET). That means no IHT needs to be paid now, but if your parents die within seven years of the gift, there may well be IHT to pay. The best thing to do to avoid this IHT is to make the gift as soon as possible, so as to start the seven year clock ticking
