Gifts to children (tax implications?)

ScottyDug

My wife is about to receive a considerable amount of money from an injury claim and would like to gift £10000 to each of her four children, are there any tax implications or pitfalls that we should be aware of?

Many Thanks

Dougie

CLAPTON

what age are the children?

ScottyDug

Sorry, I guess I should have mentioned that lol. They're all adult children, ages 23, 24 30 & 33yrs.

Thanks

CLAPTON

there is no gift tax in the Uk so she can give anyone any amount of money she likes without any tax on either party;

however , if she (sadly) dies within 7 years of the gift then there is a potential inheritance tax issue depending upon her full financial circumstances

ScottyDug

Thank you for your help, you've been very helpful.

joanie_44

hi, My ex wants to pay my eldest sons rent on his apartment
through his Company, which is a Limited Company.

Are there any tax implications involved.

He is a company Director and gets paid a salary.

thanks joanie

le_loup

Possibly. Possibly fraud.
Need a lot more information than you've given us.

Chris_Tax

joanie_44 wrote: »

hi, My ex wants to pay my eldest sons rent on his apartment
through his Company, which is a Limited Company.

Are there any tax implications involved.

He is a company Director and gets paid a salary.

thanks joanie

The strict interpretation of the rules would be that an accomodation benefit is being provided.

The employee here is the father and the benefit arises purely by virtue of his employment. Therefore it would fall to be taxed upon him.

Le loup correctly states fraud would arise if the benefit was not taxed and the Company received a C/T deduction for the expense.