Proving UK inheritance to UK tax office
Oct 24th 2019, 12:49 am
#1
Forum Regular
Thread Starter
Joined: Oct 2002
Location: BrisVegas!
Posts: 32
Proving UK inheritance to UK tax office
Hoping someone can help me with my situation.
My mother passed away in the UK.(I live in Australia) My siblings in the UK disposed of her house and the proceeds are due to be split between us.
One sibling decided to use the money to buy herself a new house. She now needs to pay me my 3rd.
She does not have the money, so our father has said he will 'gift' her the money to pay me out.
However, he wants to transfer the money direct to me. (she cant have the money in her account as she is on benefits!)
Im concerned that if he transfers direct to me, in the eyes of the UK tax office, it looks like a gift from him to me, and not my inheritance.
If he dies in 7 years, I would be hit with 40% inheritance tax from his estate.
What documentation should I get in place to prove that the money is the inheritance and not a gift?
Thanks in advance for any advice
My mother passed away in the UK.(I live in Australia) My siblings in the UK disposed of her house and the proceeds are due to be split between us.
One sibling decided to use the money to buy herself a new house. She now needs to pay me my 3rd.
She does not have the money, so our father has said he will 'gift' her the money to pay me out.
However, he wants to transfer the money direct to me. (she cant have the money in her account as she is on benefits!)
Im concerned that if he transfers direct to me, in the eyes of the UK tax office, it looks like a gift from him to me, and not my inheritance.
If he dies in 7 years, I would be hit with 40% inheritance tax from his estate.
What documentation should I get in place to prove that the money is the inheritance and not a gift?
Thanks in advance for any advice
Oct 24th 2019, 12:55 am
#2
Concierge
Joined: Jan 2013
Location: Western Australia
Posts: 21,138
Re: Proving UK inheritance to UK tax office
Hoping someone can help me with my situation.
My mother passed away in the UK.(I live in Australia) My siblings in the UK disposed of her house and the proceeds are due to be split between us.
One sibling decided to use the money to buy herself a new house. She now needs to pay me my 3rd.
She does not have the money, so our father has said he will 'gift' her the money to pay me out.
However, he wants to transfer the money direct to me. (she cant have the money in her account as she is on benefits!)
Im concerned that if he transfers direct to me, in the eyes of the UK tax office, it looks like a gift from him to me, and not my inheritance.
If he dies in 7 years, I would be hit with 40% inheritance tax from his estate.
What documentation should I get in place to prove that the money is the inheritance and not a gift?
Thanks in advance for any advice
My mother passed away in the UK.(I live in Australia) My siblings in the UK disposed of her house and the proceeds are due to be split between us.
One sibling decided to use the money to buy herself a new house. She now needs to pay me my 3rd.
She does not have the money, so our father has said he will 'gift' her the money to pay me out.
However, he wants to transfer the money direct to me. (she cant have the money in her account as she is on benefits!)
Im concerned that if he transfers direct to me, in the eyes of the UK tax office, it looks like a gift from him to me, and not my inheritance.
If he dies in 7 years, I would be hit with 40% inheritance tax from his estate.
What documentation should I get in place to prove that the money is the inheritance and not a gift?
Thanks in advance for any advice
Oct 24th 2019, 10:25 am
#3
BE Forum Addict
Joined: Sep 2005
Posts: 1,200
Re: Proving UK inheritance to UK tax office
Proof that tax has been paid already on the estate?
