If my parents give me money will I have to pay inheritance tax on it?
If your parent give you money seven years before they die it is exempt from Inheritance Tax. In the unfortunate event that your parent(s) die within seven years and their estate is above the tax-free threshold, Inheritance Tax will have to be paid. However, a lower percentage of tax is charged if it has been more than three years and this continues to get less for each year that passes. Here's the deal:
|Years between gift and death||Tax paid|
|Less than 3||40%|
|3 - 4||32%|
|4 - 5||24%|
|5 - 6||16%|
|6 - 7||8%|
|7 or more||0%|
You can read more about Inheritance Tax here.