Cash gift

Dear HMRC, My mother would like to gift me around £90K. She is 69 years of age. Can she do this? Am I liable for inheritance tax? Do I have to declare it? How does this differ to the £3K per year rule? I don’t understand what the difference is. Could you please advise? Kindest Regards, Mr Ferguson

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Not HMRC...this is a "potentially exempt transfer". There is no IHT payable for either party on gift. However, if your mother were to die within 2 years of the gift the full amount would be added back to her estate as if never made to calculate IHT on that estate. If she were to die within years 2 to 7 a tapered amount would be added back. If she survives 7 years there is no add back. The £3k is an annual exemption, where that drops out of someones estate immediately.