Inheritance tax query

Hi, My family is going to purchase a property at a cash offer of £515,000 in the next month and my parents are going to gift me the money for the cash purchase. We have a query on the inheritance tax and would like to have further clarification. In the context that my parents are considered as two individuals, and if they gift half of the cash offer £515,000 / 2 = £257,500 each to me for the purchase. Given that the amount gifted is lower than the inheritance tax threshold of £325,000, if unfortunately one of them died within the 7 years period, there is no inheritance tax to be paid as the gift is lower than the threshold? And there is a £3,000 gift allowance for each tax year, given that they haven't gifted me any money this tax year and the last tax year, therefore each of them has a £6,000 gift allowance to me this tax year. So essentially the taxable amount will reduce to £257,500 - £6,000 = £251,500. Please may you clarify if my understanding is correct?

Hi Jolinsay,
Inheritance tax works in a slightly different way, presuming your parents are married or civil partners, when one of them dies, their estate will fall to the surviving spouse / civil partner and so will their inheritance tax threshhold.  
When you lose your other parent, their estate will be subject to inheritance tax.
The value of the estate is measured at this time, with 2*£325000 inheritance tax threshhold applied.  
If your parents own their own home and give it to you (and your siblings, including adopted, foster or stepchildren or grandchildren) the threshold is increased to £500000 and potentially a threshold of £1000000 (2*£500000).  
If the second parent dies within 7 tax years of the cash gift, then it is included in the estate for inheritance tax purposes.
For more information, please have a look at the guidance at How Inheritance Tax works: thresholds, rules and allowances.
Thank you.

If a couple who have joint assets and finance give their son 300000 the one parent does in the 3 years after the gift is 1/2 of the gift ie 150.00 subject to iht and the difference is passed onto the surviving parent? Please advise

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