New row over David Cameron's tax bill dodge on mother's £200,000 gift

David Cameron faced a fresh row over his personal wealth last night when it emerged he stands to avoid a £70,000 tax bill following his father's death.

New row over David Cameron's tax bill dodge on mother's £200,000 gift 3302F1BA00000578-3531822-image-a-6_1460236054882

New row over David Cameron's tax bill dodge on mother's £200,000 gift 3302F1BA00000578-3531822-image-a-6_1460236054882

His mother Mary gave him an extra £200,000 months after stockbroker Ian Cameron died in September 2010, having left his son £300,000 in his will. It meant the money was paid to the Prime Minister free of Inheritance Tax (IHT).

If his father had left him £500,000 in a lump sum, £70,000 of it would have had to be paid to the Inland Revenue.

All bequests over £325,000 are subject to a 40 per cent tax levy.

A source close to the Prime Minister vehemently denied any wrongdoing, saying: ‘This is the kind of sensible, perfectly legal and proper tax planning that millions of ordinary people do.’

The source said Mr Cameron had no idea his mother planned to give him and his two sisters extra money after their father’s death.

After receiving £300,000 in his father’s will in December 2010, the PM’s mother gave him two additional sums of £100,000 – tax-free – in May and July 2011.

He used £137,500 to buy the field adjoining his house in Oxfordshire.

Mrs Cameron is said to have given the extra amount to the Prime Minister – with similar amounts to his sisters – to ‘even out’ the division of their father’s wealth among his four children.

Mr Cameron’s elder brother Alexander was given ownership of the main family home in Oxfordshire in 2006, worth £2.5 million.

This appears to have been designed to take advantage of the ‘seven-year rule’ which can reduce – or wipe out – IHT.

‘When she looked at things after her husband’s death, the Prime Minister’s mother felt it was important to even out the way the money was shared between all four children,’ said the source.

http://www.dailymail.co.uk/news/article-3531822/Cameron-s-tax-bill-dodge-mother-s-200-000-gift-New-row-historic-decision-publish-PM-s-tax-return-revealed-family-avoided-70-000-bill-father-died.html

New row over David Cameron's tax bill dodge on mother's £200,000 gift

New row over David Cameron's tax bill dodge on mother's £200,000 gift

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