Gifts From Parents

tsmiggy

I am not sure if this is the correct section,but would some kind soul,please explain what is allowed to be given in gifts in the form of money per year.

Cheers

fengirl_2

Your parents can give you as much as they want each year with no tax implications. However, if they die within 7 years of making the gift, it is taken into account when deciding how much IHT is due. Gifts of up to £3000 a year do not count for IHT, no matter when the donor dies.

loulou41

Gifts of up to £3000 a year do not count for IHT, can the money come from anybody e.g godparents etc or does it have to be from parents? Thanks

fengirl_2

Sorry, I misread the original question - this applies to gifts from anyone.

kalaika

Anyone can gift money to anyone else so, yes, it can come from Godparents. (They can give money to me tax free too if they wish! ) But as Fengirl said, if the donor were to die within 7 years, the gift is included in the donor's death estate when calculating IHT.

Also, to clarify, the £3,000 per year that can be gifted with no IHT implications is per donor per year, not per recipient per year.

Edit: post crossed with FG