Gift from both parents

[legalexico]

Both parents are making a gift of £100,000 to their child to purchase a property.

Do the parents have to state the quantity each of them is giving and does this mean that inheritance tax will have to be paid if one of them dies within seven years?

Having to assign an amount to each seems like a big risk, having to gamble which parent is most likely to die within seven years.

[PallasAthena]

Is the money they are giving jointly owned at the moment?

[atticus]

Clearly there is the potential for an Inheritance Tax liability.

[legalexico]

Yes the money is jointly owned at the moment and would be paid from a shared bank account in both names. Would the solicitors demand a declaration of who is giving how much?

[PallasAthena]

I don't know the answer and from a quick look online it seems this is a complex area to which there is no straightforward answer. This article, from a reputable source, points to some of the issues. Does the seven-year rule apply to jointly gifted assets? - Investors' Chronicle (investorschronicle.co.uk)

As it's a substantial sum of money you might want to get some professional advice in respect of your specific situation.

[islandgirl]

Would love to read that article but it is behind a paywall unfortunately. I am in a similar situation so keenly following this thread

[PallasAthena]

Hmm, odd as it wasn't for me when I first read it but now it's gone behind a paywall for me too.

EDIT Now here's a mystery islandgirl . The article came up near the top of a google search for 'joint gift inheritance tax'. If I click it from the google search results no paywall! I only get a paywall if I put its URL directly into my browser. So I've gone back into my google search and got the non-paywalled copy and downloaded it as a pdf. Hopefully you can open this OK.

Joint gift IHT .pdf