Inheritance

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peanut

New Member
Hi folks!

Just a quick question.. Does anyone know if I were to purchase property with cash given to me by my parents would this money considered as inherit tax? I understand the taxman can only go back 7 years.

And also, what would happen to any profits made from property bought with money if its considered inherited? Would I get taxed income made with the inherited money?

Thanks!
 
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FWL

Member
As far as I am aware, it does not matter what you do with the money. If your parents were to die within seven years then the taxman would look to reclaim a percentage. Think of it this way, if you invested all of the money and lost it, would that mean you had no tax liability? No it wouldn't.
 
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diyhelp

Active Member
It may be worth checking out the potential tax liability on profit made with inheritance money with an accountant. As mentioned above, I don't think the taxman would tax you on traditional profits as this would open them up to reduced tax income, if you made a loss.
 
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Longterminvestor

Administrator
As far as the taxman is concerned, if you inherit £100,000 and they will tax you on the £100,000, if this falls within the scope of inheritance tax. As mentioned above, I can't believe that the taxman would take anything extra for any profit made on investing that money. On that basis, they would need to allow you a taxable loss if you lost money on your inheritance.
 
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