True. However it is classed as an inheritance and not ownership transfer if the previous owner dies within seven years. There’s a sliding scale, if I remember correctly so you pay less inheritance tax if, say, your parents die after six years compared to one year after transfer. But farmers have been historically exempt from this rule so transferring ownership before the rule changes could be quite a significant tax saving.
I was aware of the 7 year rule, but I believe the new tax rate would apply at the time of the death, rather than retrospectively applying the rate from the time of the gift.
I could be wrong though.
True. However it is classed as an inheritance and not ownership transfer if the previous owner dies within seven years. There’s a sliding scale, if I remember correctly so you pay less inheritance tax if, say, your parents die after six years compared to one year after transfer. But farmers have been historically exempt from this rule so transferring ownership before the rule changes could be quite a significant tax saving.
I was aware of the 7 year rule, but I believe the new tax rate would apply at the time of the death, rather than retrospectively applying the rate from the time of the gift. I could be wrong though.
Shh no I’m probably wrong. Haven’t read enough about it.