Tax implications of gifting

mpd1958

hi,
My wife has been left a share of her fathers estate, the rest of it goes to charity, her brother has been left out of the will entirely, due to family rift. She wants to make a gift to him out of her share of the inheritance of around £10k. Her brother is selfemployed. What would be the best way to gift her brother and reduce Tax liablities to either party?

regards

CLAPTON

there is no tax on gifts so no way of reducing tax

the 10k would however form part of her estate if she died within 7 years for IHT purposes

ceeforcat

The most common question on this forum by a country mile!

There is NO gift tax in the UK - no tax implications for either your wife or brother. Should she pass away within seven years of the gift, however, the amount will be taken into calculation for inheritance tax purposes.

mpd1958

Thank to all for your replies.

Much appreciated.