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Hello, I would be very grateful for some advice please on the following:
In 2006, I was gifted a sum of money by my Mother for the sum of £150,000.00 and I deposited the monies into my account and she wrote a letter which she kept hold of, stating that she had given me the monies and that this was not a loan and that it was a gift that she did not wish to have paid back to her.* The full amount of money would therefore become exempt from inheritance tax from sometime in 2013 due to the seven year inheritance tax rule.* In 2010 or 2011, for different reasons, I voluntarily gave the monies (a higher amount than the original £150,000.00 due to interest having been accrued over the last 4 or 5 years) back to my Mother.* She deposited the cheques into her bank account but literally months (maybe even weeks) later, she again gave me the monies and I deposited them into my own account again.*
In addition to this, over the years, she gifted me the £3000.00 a year that is a tax free gift with no 7 year tax exemption rule and she gifted me the monies during several years.* My concern is that in 2010 or 2011 when I returned the lump sum to her and then she more or less immediately returned it to me, I don't know whether because I only had it for 4 or 5 years, is that money hers again automatically without the 7 year rule for her to complete.* I am fairly sure that when she gave the monies back to me, the 7 year rule for me began again.* The other issue is that she didn't write another letter when she gave it back to me and we are unsure of the exact year it was given back to me.* In addition, she didn't write letters to me when she gave me the £3K a year as she said it doesn't matter due to it being exempt of tax anyway.* I was previously advised by someone that in their opinion, it doesn't matter as I have had the money back for at least 9 years and so if my Mother passed away, the authorities would only look back at her bank statements for the past 7 years.* I am very methodical these days with keeping records but at the time, I would mix all the money up into other accounts without making records/keeping documents etc... and so the £3K a year were added to the lump sum, invested all over the place and I just wondered if you could please advise me over 1) whether the £3K needs a letter each time 2) If it matters that there is no record of when the monies were returned to me considering it was 2010/2011 and 3)If when I gave the money back to her after 4 or 5 years, whether the 7 year rule applies to her as well.* I would be very grateful for any advice that you may be able to give to me.* Many Thanks
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In 2006, I was gifted a sum of money by my Mother for the sum of £150,000.00 and I deposited the monies into my account and she wrote a letter which she kept hold of, stating that she had given me the monies and that this was not a loan and that it was a gift that she did not wish to have paid back to her.* The full amount of money would therefore become exempt from inheritance tax from sometime in 2013 due to the seven year inheritance tax rule.* In 2010 or 2011, for different reasons, I voluntarily gave the monies (a higher amount than the original £150,000.00 due to interest having been accrued over the last 4 or 5 years) back to my Mother.* She deposited the cheques into her bank account but literally months (maybe even weeks) later, she again gave me the monies and I deposited them into my own account again.*
In addition to this, over the years, she gifted me the £3000.00 a year that is a tax free gift with no 7 year tax exemption rule and she gifted me the monies during several years.* My concern is that in 2010 or 2011 when I returned the lump sum to her and then she more or less immediately returned it to me, I don't know whether because I only had it for 4 or 5 years, is that money hers again automatically without the 7 year rule for her to complete.* I am fairly sure that when she gave the monies back to me, the 7 year rule for me began again.* The other issue is that she didn't write another letter when she gave it back to me and we are unsure of the exact year it was given back to me.* In addition, she didn't write letters to me when she gave me the £3K a year as she said it doesn't matter due to it being exempt of tax anyway.* I was previously advised by someone that in their opinion, it doesn't matter as I have had the money back for at least 9 years and so if my Mother passed away, the authorities would only look back at her bank statements for the past 7 years.* I am very methodical these days with keeping records but at the time, I would mix all the money up into other accounts without making records/keeping documents etc... and so the £3K a year were added to the lump sum, invested all over the place and I just wondered if you could please advise me over 1) whether the £3K needs a letter each time 2) If it matters that there is no record of when the monies were returned to me considering it was 2010/2011 and 3)If when I gave the money back to her after 4 or 5 years, whether the 7 year rule applies to her as well.* I would be very grateful for any advice that you may be able to give to me.* Many Thanks
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