elusive wrote:Re the seven year. A neighbour who did trust planning etc said in reality the 7 seven year rule doest excist because if HMRC thinks the asset was given away with the intent to avoid taxes they can go after you at any time .of course its only relevent if the estate is above the IHT limit anyway.
I think your neigbour may be being too cautious. The 7 year taper relief rule on gifts is detailed on the UK government website and details the sliding percentages that apply to sums gifted over the £325k allowance. You can give away as much as you like but it will be taxed on this scale if you don't live for 7 years.