Inheritance Tax - The 7 Year Rule - What is it?

As a Property Investor, we gather assets so Inheritance Tax is likely to be a question we have to deal with. How do we reduce our estate during our lifetime to reduce the impact of this final tax hit.
The 7 year rule is a great way to manage your inheritance tax and mitigate any tax payable.

In this video you will discover:
What is the 7 year rule?
When can you use it?
How does it work of you don't live for 7 years?

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DISCLAIMER: Please be advised that the content of my media is my personal opinion and is intended FOR GENERAL INFORMATION PURPOSES ONLY, not specific tax advice. Nothing herein shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker. Making decisions on your tax position and investment decision is your own and appropriate specific targeted advice from a qualified accountant or tax advisor should be sort. The speaker will not be held responsible for any losses or gains based on decisions made following watching this video. Always do your own research and seek advice from an appropriately qualified professional.

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[vespasian]

Good video and very helpful. My parents have an estate in excess of £1m and are looking to gift me £500k. Do both of them have to live past 7 years to make it tax exempt and what happens if one dies? What happens if I spent it all and they both died within 3 years - I’m guessing the taxman would still want payment from me? People could come unstuck with this so would be good for more about these sorts of things if you did a follow up video. Thanks

[marytheresahay]

My husband left all his estate to me when he died so as I understand it I am allowed to have £650, 000 before being liable for inheritance tax. George Osborne then added the family house to that amount making the tax free amount £995, 000. I am about £200, 000 under that amount. If I gave my two children about £50, 000 each now while I am under, if my house went up in value say in three years to take me over the £995000 threshold would inheritance tax be due on what I had given them?

[Cool_Kids_Animate]

Hi, Great video thanks. Quick question, if you use the 325k allowance within the 7 year rule does this just mean you don’t have that allowance once the person gifting has passed away? Or is there a fresh 325k allowance? Thanks

[adwoa]

Hi, how would HMRC know about PETs? Does someone crawl through the bank transactions of family members?

[graemehoward-kinsley]

If parents gift a jointly owned second property to daughter and only one parent survives the 7 years does any PET return to estate?

[annabellebloomfield]

How much inheritance tax if half of the property was given to charity? The person gave the gift died after 2 years? Can we reduced more because of charity?

[mikeroyce]

Thanks for this Kimberley.

Is it the case that if I make a gift to a trust, then if I make any more gifts above £250 (apart from gifts of the £3, 000 allowance and gifts out of income) to a person or a trust in the next 7 years, then it cause the 7 year rule to start again on the original gift to the trust?

[sssfff]

Hi, if I gift my son a house that has been rented out, and he moves in, as his main residence, then sell the house in a year or two, will he be charged with CGT or Inheritance tax? Will he be able to use the Private residence relief and the main residence relief to mitigate the amount taxable? thanks for your advise.