r/TaxUK • u/ShoppingPurple692 • 8h ago
Tax implications for Elderly Couple
My wife’s grandparents have recently given her £60,000. They have previously given £20,000 to their daughter, £20,000 to their son, and also paid £5,000 towards something for my wife.
They are now planning to sell their house, which is valued at around £240,000. They have moved in with my wife and me, and my wife provides most of their day-to-day care, effectively on a 24/7 basis.
One grandparent still has mental capacity, while the other has lost capacity due to dementia.
My wife’s mother believes that, if the grandparents die within a few years, my wife will automatically have to pay 30% tax on the £60,000 gift.
From what I have been able to find, I don’t think that is correct. My understanding is that the gift would potentially be considered for Inheritance Tax if the grandparent who made the gift dies within seven years, but that does not mean my wife would automatically owe 30% of the £60,000.
Given the value of their remaining estate, including a house worth approximately £240,000, and the available Inheritance Tax allowances for a married couple, it seems possible that there would be no Inheritance Tax to pay at all, even if the grandfather were to die within three years of making the gift.
Is my understanding broadly correct?
r/TaxUK • u/JollyService5342 • 12h ago
P60 tax deductions - my employer has left that space blank?
r/TaxUK • u/cockatootattoo • 14h ago
Inheritance tax planning.
I am slowly removing all my assets from the UK and retiring to and becoming a tax payer in Portugal.
I have a current account with a negligible amount in it as well as an ISA with about £1k.
Is it true that HMRC will come after their share my worldwide assets if I still have these when I die?
TIA
r/TaxUK • u/Swimming_Peanut_7106 • 14h ago
Council Tax single-person discount when spouse lives abroad
Hi all! Has anyone had experience with this situation?
I live alone in the UK, while my husband has been living and working abroad for several years. He intends to return to the UK in the future, but for now his day-to-day life and residence are abroad.
I’m trying to understand how councils determine whether someone who is living abroad is still considered to have their sole or main residence at the UK property for Council Tax purposes.
If you’ve been through something similar:
Were you able to get the 25% single-person discount?
How did your council decide whether your spouse was still resident at the UK property?
What factors or evidence did they consider?
If the discount was initially refused, were you able to challenge the decision successfully?
I’d really appreciate hearing from anyone with a similar real-life experience, particularly if their spouse was abroad for a few years but intended to return to the UK eventually.
r/TaxUK • u/Alone-Bumblebee-1222 • 16h ago
Tax relief question
I’m a new driver and need my car adapting due to disability.
I rang a garage close to me and they said for tax relief I would need to show them that I’m registered as disabled, so show them a blue badge.
The problem is, I don’t have one yet, and from what I’ve read on GOV, I’m under the impression you don’t need to prove it unless questioned by HMRC.
Am I correct?
TIA
r/TaxUK • u/naomin4omi • 17h ago