tax implications of giving money to a relative?

hannaht
hannaht Posts: 58 Forumite
First Post First Anniversary Combo Breaker
in Cutting tax
Hello

As I understand it, if I give some money to a relative as a gift, there are no tax implications for either of us, unless I die within 7 years.

Can anyone confirm if this is the case, or am I misinformed?

Thanks in advance for any advice

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    you can give what you like to anyone.

    however if you die within seven years then this money is counted as part of your estate for inheritance tax purposes and so the estate would have to pay the IH tax assuming your total estate was above the limit at that time.

    mind you if you didn't give it away it would then be part of your estate when you die and would attract IH tax anyway
  • kevin0410
    kevin0410 Posts: 227 Forumite
    But say you gave away some money, you could just say that you gambled it away couldn't you? Who's gonna know?
  • oldwiring
    oldwiring Posts: 2,452 Forumite
    Name Dropper First Post First Anniversary
    Don't forget that some giftd are outside the seven year rule. Scroll down to Exempt Gifts on the link.
  • hannaht
    hannaht Posts: 58 Forumite
    First Post First Anniversary Combo Breaker
    Thanks everyone for the replies. That's what I thought was the case, but I just wanted to check.

    Thanks a lot
    H
  • kevinroet
    kevinroet Posts: 1 Newbie
    Hello,

    I would like to give £8000 to a relative to look after, to then receive it back some time in the future. Will this money be taxed if done so within a 7 year period?

    Kevin
  • kazzys51
    kazzys51 Posts: 214 Forumite
    hi there as far as i'm aware if you or the other person r self empl you are only allowed £2000 gift money in any given tax year other wise it looks like a earning thats was info i was given last yr this yrs may be increased you proberbly cud just phone and ask hmrc it as a general question gd luc
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    I can't see why you want to do this
    but yes you can ask a relative to look after your 8k without any tax implications and yes they can return it to you without any tax implications
    .. It might be prudent to document what is being done so if the relative died etc then you would have first claim on the 8k.
  • sloughflint
    sloughflint Posts: 2,345 Forumite
    What if the relative went bankrupt or divorced whilst 'looking' after your money? Might not be a good idea if you want your money back.
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