tax implications of giving money to a relative?

[hannaht]

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

[CLAPTON]

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]

But say you gave away some money, you could just say that you gambled it away couldn't you? Who's gonna know?

[oldwiring]

Don't forget that some giftd are outside the seven year rule. Scroll down to Exempt Gifts on the link.

[hannaht]

Thanks everyone for the replies. That's what I thought was the case, but I just wanted to check.

Thanks a lot
H

[kevinroet]

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]

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]

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]

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.