Inheritance tax questions

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David_Dublin

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Hi. I have a question on inheritance tax.

My parents split up years ago.

One parent "gave" me 130k to help buy my house in 2008. I never worried too much about the tax implications of this. My thinking was always that this could be considered an inheritance and so could be ignored for any tax implications.

My other parent is terminally ill now and is planning to leave me an inheritance at the threshold, I think it is 225k. But obviously I have already used up an element of the tax free threshold.

Is it possible to "forget" about the 130k? Could it come back to bight me? How likely is it to happen, i.e. if I was to receive the 225k and not pay tax on it?
 
You are obliged to disclose prior gifts and inheritances to Revenue. If you don't, you are liable to penalties and interest.

What you're asking is: what are the odds on Revenue catching me defrauding them? It does not sound nice when said like that.

mf
 
33% tax rate does not sound nice to me either. Especially when the proceeds were spent on a house that is in a very large amount of negative equity.
 
Finding yourself in negative equity is tough, but is not a moral justification for committing tax fraud.
 
Not looking for moral justification. Nor judgement, to be frank. Interested in finding an answer to the original question though.
 
David_Dublin said:
Not looking for moral justification. Nor judgement, to be frank. Interested in finding an answer to the original question though.
Click to expand...

Of course it is possible for YOU to 'forget' about the 130K... whether Revenue will forget if they choose to audit you is another matter. You are effectively rolling the dice to see if you get caught by Revenue. If you do get caught, the interest and penalties will be significantly more than the current 33% tax rate...

In any event, you are not going to get advise on this website about defrauding Revenue.
 
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