Capital Gains Tax

[saramara]

Will we have to pay capital gains tax if my father in law gives us �80,000 and we use it to pay off our mortgage?

[kags]

No. However, if your father in law were to die within 7 years and his total estate, including all gifts in the preceeding 7 years, exceeded the exempt band for Inheritance Tax at the date of his death, then the gift may become liable to tax. This tax would be payable from the estate, and the effective rate of tax reduces with the number of years that have elapsed since the gift. The Inheritance Tax Threshold for the tax year 2006/07 will be �285,000.