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    • NikNak72
    • By NikNak72 13th Mar 18, 4:51 PM
    • 4Posts
    • 0Thanks
    Directors Loan Gift (IHT)
    • #1
    • 13th Mar 18, 4:51 PM
    Directors Loan Gift (IHT) 13th Mar 18 at 4:51 PM
    Hi, can anyone tell me if a solicitor is needed to make a legal document to gift money from a Directors Loan Account (in credit) of £300k to two grandchildren (both over 18).
    I know that gifts should be recorded, when and how much was gifted.
    Read elsewhere that it is better to have an official document to record this, as HMRC may query it in the future.
    I under stand the 7 year rule and PET's

Page 1
    • xylophone
    • By xylophone 13th Mar 18, 7:03 PM
    • 24,815 Posts
    • 14,569 Thanks
    • #2
    • 13th Mar 18, 7:03 PM
    • #2
    • 13th Mar 18, 7:03 PM
    You made a loan to the company?

    You are gifting the benefit of the loan to your grandchildren?

    Above seems relevant.
    • NikNak72
    • By NikNak72 14th Mar 18, 10:35 PM
    • 4 Posts
    • 0 Thanks
    • #3
    • 14th Mar 18, 10:35 PM
    • #3
    • 14th Mar 18, 10:35 PM
    Hi, thanks for the reply.

    Yes it's BTL / Property development.

    Yes I would like to remove the money from my estate, for IHT planning.

    I will speak to the solicitor about this, wasn't sure what the document was called that's required. The other option is setting up an Family Investment Company to hold assets.
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