Car inheritance
Discussion
Right - most are aware by now that my father is to pop his clogs soon. Not the issue here, though.
He currently has a yr2000 (i think) SLK 320.
Simple question: if he were to sell the car to me, now, for a pathetic sum of money, is it traceable by the inland revenue when he passes?
Could he sell it to me for £1, for instance, and technically not have a car as part of his estate?
A crude question, but these things have to be addressed, and my father is particularly keen to avoid Gordon Brown as much as possible!
He currently has a yr2000 (i think) SLK 320.
Simple question: if he were to sell the car to me, now, for a pathetic sum of money, is it traceable by the inland revenue when he passes?
Could he sell it to me for £1, for instance, and technically not have a car as part of his estate?
A crude question, but these things have to be addressed, and my father is particularly keen to avoid Gordon Brown as much as possible!
I understand your situation - I have had to deal with this before.
How much is the car worth?
Generally, if it is not too much the IR are unlikely to bother if the rest of the estate is being hit for inheritance tax.
IIRC, selling items of for nominal sums is not really given much credence these days.
How much is the car worth?
Generally, if it is not too much the IR are unlikely to bother if the rest of the estate is being hit for inheritance tax.
IIRC, selling items of for nominal sums is not really given much credence these days.
titiany said:
Right - most are aware by now that my father is to pop his clogs soon. Not the issue here, though.
He currently has a yr2000 (i think) SLK 320.
Simple question: if he were to sell the car to me, now, for a pathetic sum of money, is it traceable by the inland revenue when he passes?
Could he sell it to me for £1, for instance, and technically not have a car as part of his estate?
A crude question, but these things have to be addressed, and my father is particularly keen to avoid Gordon Brown as much as possible!
I think you're unlikely to find any such loophole - legally. Selling items below market value is equivalent to a gift, and such gifts come under the 7-year IHT rule.
If you're happy that you might come unstuck if an inheritance were to be investigated, it might be highly unlikely that anything would come to light.
pdV6 said:
Unfortunately all the ideas mooted here are illegal.
That's not to say they wouldn't work, though... it just depends on how closely the Inland Revenue look at your case.
They're only illegal if you get caught
Every penny of tax saved is a penny less for Labour to piss up the wall.
Is your mother still alive?
My father passed away on Good Friday and everything including his car went to my mother (a good job too as I wrote hers off the following Tuesday) - no IHT applicable between spouses AFAIK.
Your mother could then give the car to you after the necessary paperwork has been completed with the DVLA etc
My father passed away on Good Friday and everything including his car went to my mother (a good job too as I wrote hers off the following Tuesday) - no IHT applicable between spouses AFAIK.
Your mother could then give the car to you after the necessary paperwork has been completed with the DVLA etc
My uncle died last year and left his car to one of his daughters. It was in his will as one of the bequests, simple as that.
The only minor complication arose afterwards as until probate is granted the car techincally belongs to the Estate and so the names for insurance are the Executors (of whom the beneficiary was one), but it all worked out OK.
IIRC beneficiaries don't pay tax on bequests, it's the Estate that pays the IHT.
>> Edited by simpo two on Thursday 12th May 11:13
The only minor complication arose afterwards as until probate is granted the car techincally belongs to the Estate and so the names for insurance are the Executors (of whom the beneficiary was one), but it all worked out OK.
IIRC beneficiaries don't pay tax on bequests, it's the Estate that pays the IHT.
>> Edited by simpo two on Thursday 12th May 11:13
Size Nine Elm said:
I think you're unlikely to find any such loophole - legally. Selling items below market value is equivalent to a gift, and such gifts come under the 7-year IHT rule.
Ah, I see.
I've got a lot to learn!
Well I don't really fancy breaking the law, but at the same time it all seems a bit harsh!
_topcat said:
Why not just put the car in your name. he will no longer own it, therefore not part of his estate. Please point out what i may have missed. cant see a problem with this.
It then becomes a gift and is therefore subject to tax as part of the estate for the next 7 years. As the father is not expected to last this long
, it gains nothing. {edited to add:} And in any case, the name on the V5 is the "registered keeper", not the "owner"...
{edited again to add:} as BR points out on the next page!
>> Edited by pdV6 on Thursday 12th May 11:22
>> Edited by pdV6 on Thursday 12th May 11:23
Inland revenue scum...
Bloody hell, I'd break this law to keep them tw*ts from taxing me when I'm bloody dead!
Surely you can sell the car on ebay or similar, put up no reserve, no pictures, a dodgy description, and say a day to run.
Try work it so no one bids for it except whoever. Do the deal for like £10, and legally it's yours!
Cheers
Dave
Bloody hell, I'd break this law to keep them tw*ts from taxing me when I'm bloody dead!
Surely you can sell the car on ebay or similar, put up no reserve, no pictures, a dodgy description, and say a day to run.
Try work it so no one bids for it except whoever. Do the deal for like £10, and legally it's yours!
Cheers
Dave
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