Max % tax chargable

drdave690 | 16:18 Fri 21st Mar 2008 | Business & Finance

5 Answers

My cousin is about to be given/left a HUGE sum of money and has been told by his financial advisor that he will have to pay tax on the Capital at 60%. Is this normal in this country.

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dzug

What country are you talking about? Sounds total garbage to me. There is NO gift tax in the UK.

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Finance Guy

Sounds like a crap advisor to me!

Advice given so far is exactly right, no tax due on lifetime transfers if the person making the gift lives for at least 7 more years

Tom Braider

And even if the donor does die within 7 years all that happens is that the gift is added back into their estate for inheritance tax. The recipient of the gift isn't taxed.

dancecaller

Money that is left can be stated to be free of inheritance tax (i.e. the person who inherits the residue of the estate pays all the tax), or it can be written in that each recipient pays their own tax.
The IH will be at 40% (over a certain tax free amount), maybe the advisor said he'd only GET 60%.

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