Wedding Gift to Daughter

North-East_Quine

My daughter is getting married next year. It's a small wedding so we intend giving her money to put towards a mortgage. I understand that my husband and I can give her a £3,000 gift in any tax year. Does that mean that my husband and I can give her £6,000 in total from our joint savings account - £3K from me and £3K from him. Or is it £3K in total as a joint gift?

I am confused!!

grumpyoldgit_2

From HMRC IHT Guide:

Gift in consideration of marriage or civil partnership

A gift made to a person who is about to get married or to form a civil partnership. These gifts are exempt from IHT up to the following amounts:

• £5,000 made the person's parent
• £2,500 made by the person's grandparent
• £1,000 made by anyone else

Note the singular parent - I would say you each have the allowance - therefore £10K between you.

GoG

innovate

Sorry if this is a daft question - but if I give somebody (relative or not, occasion immaterial) money from my savings, on which I have paid all the tax due, why is this any business of the HMRC?

I can spend any of my money in shops etc (anywhere in the world), I have no obligation to tell the HMRC about it, so why would I have to tell them if I give money to my kids?

Do I get a tax allowance [whilst I am alive - IHT is when I am dead, right?] if I give money as a wedding present?

grumpyoldgit_2

You are right BUT Big Brother (HMRC) views such a gift as a potential liability for your estate in calculating death duties (IHT) - which would be "discovered" when probate is sought :rolleyes:

innovate

How does Big Brother know what I did with my money? I could have burnt it and he wouldn't even have seen the smoke! Unless I invited him to the burning, that is

grumpyoldgit_2

Ah well now THAT is the question..............
No prizes from me but clear advantages for you if you come up with the correct answers :cool:

creditcardking_2

So long as your not claiming any benefits and trying to reduce your capital and you don't die during the next seven years and are trying to give money away to reduce your Ineritence Tax bill then you can give as much money away as you like. In the UK there is no such thing as gift tax like in America.

leafton

Wonderful news for your daughter-£10k instead of £3k!!

asharon

a very nice gift too

blue-kat

does anyone know what is the time limit of wedding gifts in relation to IHT?

the wedding was last June, but the cash wasn't available then as was dependent on sale of house.

if the cash gift is made now, can it still be counted as a wedding gift?

I've looked in the guide to IHT but can't find the relevant info.
thanks v much

CLAPTON

wedding gifts have to be made near and before the date of the wedding.


but why is this important , if you dont give it to your daughter and you die then she will have to pay the IH tax anyway and if you give it to her now and you die within 7 years she may have to pay it too so why bother with all this...if you can afford it give what you can afford.