I made no reference to IT........maybe i should have written "in addition"

affinity:

I hope someone has given your dad advice on disposing of his assets should he require long term care in the future as this can be viewed as delibrate evasion

You surely mean evasion of care home fees, not inheritance tax. !

This could be true, if care needs are reasonably expected or foreseen at the time the money was gifted and it was deemed the gifts were made to depive him of his capital.

I hope someone has given your dad advice on disposing of his assets should he require long term care in the future as this can be viewed as delibrate evasion

Hi --- You only need worry about inheritance tax if your Dad's total estate on death exceeds the current single persons IHT threshold of £312,000 pounds (rising yearly)

This estate figure will also take into account the value of any gifts he has made in the Seven years leading up to his death.(after Seven years they are not added to the estate, simply disregarded)

As it looks, your Dad's estate would not be liable for any IHT as the total value of his estate for tax purposes is £40k + the 3 gifts made total £75k equals = £115k total estate....... meaning his assets are well below the current £312k tax threshold.

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????