Gifting money from the sale of a house

[phester]

I was just wondering what options are available to me. I am trying to purchase a house that was inherited by my mum in 2000. I know that she has to pay inheritance tax from the appreciation of the house since inheriting it in 2000.

1. Can I purchase for some value below the valuation of the house.

2. If she is to gift some money to a child is this money taxable. She seems to think that it will be tax free on her side but the child will then have to pay tax on this amount.

Any other information on gifting money would be a great help

 

[woods]

A child can receive around 500K from a parent tax free assuming that they have received no other gifts.

 

[woods]

1. Can I purchase for some value below the valuation of the house.

The revenue will have to be informed that it is not an "arm's length" deal and will require a valuation but you can get it as low as possible. If it is somewhere reasonable I do not think that they will dispute it but they do have the right to.