cash gift to my children
Options
interest_Ted
Posts: 155 Forumite
in Cutting tax
I am about to receive my retirement cash lump sum. I would like my four children to share my 'good fortune' in a small way by giving them £3,000 each.
I understand that I can give away up to £3,000 each year without any tax liability on anyone's part. So can I achieve my aim by doing the following....
Give each child as follows...£750 from this years 'allowance' and £750 from last year's (as I didn't make any gifts last year). And then can my spouse do the same, bearing in mind what is mine is hers etc etc .
If yes, then as the money will come from a joint bank account (my wife and me) can I just transfer £3,000 by BACS to each, or should I/we do it in two lots of £1,500 ?
Finally - I would like to give another relative about £500. Can this be on basis of £250 this year and £250 last year, or should it be £250 from my wife and same from me ?
Although I hope to last at least another 7 years, I just don't want to expose anyone to the idea of the gifts beings PETs.
Thanks in advance.
Ted
I understand that I can give away up to £3,000 each year without any tax liability on anyone's part. So can I achieve my aim by doing the following....
Give each child as follows...£750 from this years 'allowance' and £750 from last year's (as I didn't make any gifts last year). And then can my spouse do the same, bearing in mind what is mine is hers etc etc .
If yes, then as the money will come from a joint bank account (my wife and me) can I just transfer £3,000 by BACS to each, or should I/we do it in two lots of £1,500 ?
Finally - I would like to give another relative about £500. Can this be on basis of £250 this year and £250 last year, or should it be £250 from my wife and same from me ?
Although I hope to last at least another 7 years, I just don't want to expose anyone to the idea of the gifts beings PETs.
Thanks in advance.
Ted
0
Comments
-
Hi Ted, welcome to MSE :beer:
Your plan sounds spot on. The £250 small gifts exemption can't be carried back so the £500 gift would have to be £250 from both yourself and your wife.
There shouldn't be any issue with making a single payment from the joint bank account - just keep records of what you've done in case HMRC want to investigate.
JC0 -
Many thanks JC. Much appreciated.
Just a small further thought - cash gifts at Christmas and birthdays etc.
Are these, strictly speaking, supposed to be covered within the £250 to anyone rule? Something at the back of my mind says that cash gifts at such times are excluded altogether providing they are reasonable. So for example a few £20 notes inside the kids' (or anyone else's) cards would be acceptable, and not considered, strictly speaking, to put us over the £3k or £250 limits.
Thanks again
Ted0 -
I dont think HMRC will hunt you down if you die within 7 years of sticking a fiver in a crimbo card0
-
BTW you can give unlimited regular gifts (ex Christmas and birthdays) out of your income ( as opposed to capital) without incurring any IHT liability at all, as long as they don't have an impact on your lifestyle.
That's in addition to the 3k a year and small gifts allowances.Trying to keep it simple...0 -
You give your partner £6000.
Then you each give each of your children £1500 each.
This assumes niether of you used any of your previous year's £3000 allowance...0 -
How much can my eldly mother gift out per year without affecting her state benifits:)0
-
If she is on benefits you should not even be considering taking money from her. Does she, do you, know what the future holds.0
-
Maybe she could give you a few quid towards english lessons.0
-
Maybe she could give you a few quid towards english lessons.
They're free here:
http://www.english-online.org.uk/
Mum can keep her benefits after all!"I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.0 -
Does anyone know if there is a tax liability if I give my son & his wife a £20k gift to help them put a deposit down on their house?0
This discussion has been closed.
Categories
- All Categories
- 343.7K Banking & Borrowing
- 250.3K Reduce Debt & Boost Income
- 450K Spending & Discounts
- 235.9K Work, Benefits & Business
- 609K Mortgages, Homes & Bills
- 173.3K Life & Family
- 248.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards