Death & Taxes!

[puddingcat]

Yesterday I was evil for torturing gingerbread men. Today I'm twisted :)

M commented that someone had won £25k by betting that they'd live to 100. I simply said that it would be better to bet on one's parents living to a certain age, because then inheritance tax wouldn't be an issue on the winnings.

Apparently that's not a normal response. Seems perfectly logical to me...

Comments

[puddingcat.livejournal.com]

Cash isn't covered by the CGT rules :) If his kids had bet on him & made the £25k, it's exempt from tax - gambling winnings are exempt from income tax (unless you're a professional gambler...), cash is exempt from CGT, and the people who won the money wouldn't have died so IHT wouldn't be an issue, either :)