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Posted Sun, 22 Sep 2024 16:50:05 GMT by Drinkonthemoon Clarke
Hi, My mum recently passed away. Her total estate is just savings and worth about £20k and she had no property. Over the past 7 years, she gave me about £15k in gifts. Am I right to think that these gifts are not subject to any tax as the total of gifts and the estate is under £325k? The executor has asked me to compile info about all these gifts.
Posted Fri, 27 Sep 2024 10:41:49 GMT by HMRC Admin 20 Response
Hi,
Inheritance tax is a tax on the estate (property / money / possessions) of someone who has died. 
There is normally no inheritance tax to pay if the value of the estate is below the threshold of £325,000.  
Inheritance tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died. 
Gifts made in the last 7 years before someone dies, use up the £325,000 tax free allowance first, but if the gifts received are less than the £325,000 inheritance tax free allowance, any unused threshold can then be used by the estate of the person who has died.   
If the person who died owned their home (or a share in it) the tax free threshold could be increased to £500,000. 
You can find out more information here:  
Work out Inheritance Tax due on gifts  
Thank you.

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