What gifts are tax free?

bertieo

Does anyone know if there is a limit on the amount of money that one person can give to another as a gift without it being treated as taxable income? Or is any amount considered taxable? Does it make any difference if the gift is between family members or not?

CLAPTON

you can give what you like to anyone you like without paying tax

if however, your total estate is liable to inheritance tax and you unfortunately die within 7 years then the gifts will be included in your estate for the purposes of IHT

bertieo

I wasn't thinking I would pay tax. I was wondering how much you can give someone else without them being liable to pay tax on what you give them. Can anyone be given any amount of money as a gift, without them having to declare it as taxable income?

CLAPTON

indeed so, there is no tax to pay by either party on a gift of money

bertieo

Thank you for confirming this.

Kavanne

CLAPTON wrote: »

indeed so, there is no tax to pay by either party on a gift of money

I swear I saw a website with some limits on it? Like £3000 per year or whatever if it's for a wedding... is that a different law?

RayWolfe

Kavane, don't answer if you don't know.
The 3K relates to IHT, a completely different matter and if the OP wants to know about the complications of that, they can ask. Meanwhile CLAPTON has given his usual perfectly correct answer to the question.

Kavanne

RayWolfe wrote: »

Kavane, don't answer if you don't know.
The 3K relates to IHT, a completely different matter and if the OP wants to know about the complications of that, they can ask. Meanwhile CLAPTON has given his usual perfectly correct answer to the question.

I am sorry for seeking knowledge. I didn't think it necessary to create a whole new thread for a related question. And seeing as the OPs question has already been answered it shouldn't confuse them too much

Jeeeeeeez, be kind to moneysavers. I only trust posts that contain links to official government information in.

So the jist is: If you give someone over £3000 in any year and then promptly die within 7 yrs, there will be IHT to pay.

However if you don't pop your clogs there is NO tax of ANY kind to pay? No declaration on your tax return or anything?

I am only asking as my mum might give me some money but she says she'll have to pay it in installments because she can't give me more than £3000 a year... :rolleyes: Glad this is incorrect! Do you have a link to this info on the web as she will want to see it. She is paranoid when it comes to the tax man.

dzug1

Kavanne wrote: »

So the jist is: If you give someone over £3000 in any year and then promptly die within 7 yrs, there will be IHT to pay.

However if you don't pop your clogs there is NO tax of ANY kind to pay? No declaration on your tax return or anything?

First part - no. There will only be IHT to pay if your Mum's eventual estate is over £300,000 in total (and I think that figure's gone up or is going up soon). If your Dad is dead and left everything to your Mum you can double that figure.

Second part correct. The only tax to pay is on the interest you receive after you have the gift.

RayWolfe

Sorry Kevanne. I did not see your post as seeking information but of questioning the information that had been provided.
You now have your answer, in part.

sloughflint

Kavanne wrote: »

Jeeeeeeez, be kind to moneysavers. I only trust posts that contain links to official government information in.

Maybe this is the link you've seen?
http://www.hmrc.gov.uk/cto/customerguide/page6.htm

and in particular:
http://www.hmrc.gov.uk/cto/glossary.htm#Exemptgifts