IHT position if Parent gives house to Carer Daughter?
My mother, who requires 24-hour care, wishes to give her house to my sister. My sister, aged 58, is registered disabled herself but has for the last three years plus, managed to do a sterling job of care, helped not least by the fact that until recently, she was a senior nurse. This has saved a fortune in care home fees, previously running in excess of £40,000 p.a. It is clear that without my sister's support, my mother's limited quality of life would be even more grim.
After the gift, my mother would be required to pay my sister rent. As mother is doubly incontinent and occupies and uses only one room at all times, save for occasional use of the toilet outside her room, it is intended to charge £4,250 p.a., which my sister will claim under the Rent-a-Room provisions.
My sister has asked me to find out what is the IHT position. She has been advised that there is a tax break by virtue of her being my mother's carer.
Comments as to the viability of the gift from an IHT standpoint would be appreciated.
- Capital Gain? 468 13
- Abandoning accountancy membership in order to operate as a sole trader 970 27
- thinking of starting up - AAT ACCA 83 4
- How does the tax payer dis-apply/disclaim from use of their personal allowance? 390 9
- Client cash balances, on or off-balance sheet for full service brokerage firm 191 3
- Abolish the penalty regime 229 5
- break even point 553 16
- How much to charge? 110 2
- IR 35 deemed payment calc 63 1
- Separating a business into retail and wholesale, with husband and wife as separate owner/managers. 115 4
- IHT Query 211 4
- Client charged VAT by US supplier 367 9
- Old Books for a 'NON' Client 426 2
- BrightPay 683 22
- 3 Days Grace for late FPS's? 236 3
- What are CIS subcontractor clients worth to you ? 441 8
- Gift or Capital Gain? 376 11
- SDLT on leases 133 1
- Is practising Certificate needed 392 7
- Are Court and tribunal Judges honest/commit fruad ? 314 4
- Possible Partnership? 458
- Tax and accounting treatment on long lease granted from freehold 434
- Lunatics in charge of the asylum - Bluestone 424
- Purchase of property freehold - capitalisation of costs 225
- Growing Limited Company concerned about assets if something goes wrong 220
- Clubs and Taxable Income 214
- Income tax on foreign dividends 206
- New Fangled Penalties 203
- Subsistence and hotel expenses 203
- Deferring taxable income until after 5 April 176