Gifting money

rustyd_2

What is the best way to gift money to avoid paying tax on it.
Potentially looking at gifting £30k each to our 2 adult children. The money is coming from a successful compensation clam from the death of a loved one.

MrsManda

Providing you don't die within 7 years no tax will be paid.
Sorry, this refers to Inheritance Tax
I don't believe you are eligible to pay any other tax on money given to family but someone else with better knowledge is likely to confirm that.

glider3560

There is NO gift tax in the UK.

If you die within 7 days of making the gift, then the gift forms part of your estate for inheritance tax purposes.

kalaika

As glider says, the UK does not have any gift tax. You can give your money to whoever you like, but there may be an inheritence tax liability if you pass away within 7 years.

Also take into account the effect it may have if you need to go into a care home (google deprevation of assets)