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.
- Accountant software 404 11
- Accounting jobs in the UK 138 2
- Foreign income on Self Assesment 229 1
- What aspects of accountancy/book-keeping most trouble people 140 2
- Dividend paid to non-shareholder 197 4
- CIS gross status review 89 1
- Notes needed for a new partner in an LLP 123 2
- Dividend payments to spouses 348 6
- Flat rate vat error 242 5
- Whats the best way to keep my accounts? 134 5
- How do I clear transaction history - Sage 50 v9 142 2
- Whats the best way to keep my accounts? 81 1
- Property versus Trade in a Ltd Company 146 4
- When will Private Principal Residence Relief cut will start? 360 8
- Snotty HMRC letter - continued 619 17
- Dispensation pointless ? 268 4
- Accountant Pays Clients Tax 608 11
- Are bankruptcy restrictions order becoming more common? 202 4
- Charge out rates in London? 215 2
- Negative retained earnings & Dividends 184 3
- Desperately seeking Susan, Sam or anyone with any other name 752
- Experience with Islamic investor following Sharia-compliant rules? 483
- Darwinpay Partnership Assessment 297
- How to format a stock book 263
- S464A Charge to tax: conferring benefit & BIK 211
- Tax efficient holding company structure 201
- Outlook 2007 with business contact manager not loading on new laptop 190
- Investment property company accounts template 190
- auto enrolment - calculation of first pension deduction 168
- Sage 50 Customer Statements and Running Balances 160