Hi can anyone help me. My dad has sold his house and moved into sheltered housing. He has given money (approx £25,000 each to me and my two brothers. that leaves him approx £40,000 in the bank . Can someone explain inheritance tax to me? i have been told by a friend that if my dad dies within 7 years we will need to pay tax. but i have also read somewhere that the estate needs to be wworth more than £300000????