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.
- Scottish independence - what happens to HMRC? 993 56
- Are HMRC cutting out Agents in tax investigations? 229 2
- Dental practice incorpration 102 1
- Audit rules 145 4
- Stopping trading and de-registering for VAT 218 5
- Disengaging a client who uses our office as a registered office address 798 20
- Go Cardless 254 8
- business entertaining deductibility 113 1
- Self assessment tax arrears 113 2
- R & D 99 3
- Shareholder/Directors termination payments 68 1
- Childcare vouchers and final month payroll Qs 106 2
- Can anybody help withe the RTI end of year process? 144 3
- Payroll software with annual pay period? 137 1
- New Business Registration 209 5
- Hosted email exchange 126 4
- Excel formula for UK corporation tax including losses 144 1
- G P life time allowance 113 3
- Why will HMRC not code out my client's £1,730 underpayment for 12/13 368 11
- Bringing money to Uk 214 3
- Xtuple 500
- Qtac payroll for bureau 333
- Confused - Professional Association a Mutual trader, or not? 277
- Industrial & Provident Societies 275
- Mehjoo 219
- Data transfer from Sage Line 50 to VT Transaction+ 216
- New strategic report 169
- Domain name sale and limited company 156
- South African Government Pension 153
- CIS schemes 146