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Gifts - Will the recipient be liable for tax
Spottie
Posts: 3 Newbie
in Cutting tax
I am aware that I can give around £3000. a year
Rather than give a yearly lump sum, if I give £250 a month to my child (who is working and paying tax - just the standard rate) will they have to declare this as unearned income and pay tax on this gift ?
Rather than give a yearly lump sum, if I give £250 a month to my child (who is working and paying tax - just the standard rate) will they have to declare this as unearned income and pay tax on this gift ?
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Comments
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No tax on gifts.0
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I am aware that I can give around £3000. a year
Rather than give a yearly lump sum, if I give £250 a month to my child (who is working and paying tax - just the standard rate) will they have to declare this as unearned income and pay tax on this gift ?
there is no limit on what you can give to anyone without any direct taxation
the 3,000 limit you are aware of is to do with inheritance tax if you die in the next 7 years... is that your concern?EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
there is no limit on what you can give to anyone without any direct taxation
the 3,000 limit you are aware of is to do with inheritance tax if you die in the next 7 years... is that your concern?
No I am not worried about Inhertitance tax, I just dont want the recipient to have to pay tax on the gift, be it a yearly or monthly gift.
So are all gifts tax free ?0 -
No I am not worried about Inhertitance tax, I just dont want the recipient to have to pay tax on the gift, be it a yearly or monthly gift.
So are all gifts tax free ?
yes all gifts are free of tax to the recipient.
IHT is a potential factor if the amount is over 3k per annum and you die within 7 yearsEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
But, if you have enough income to gift £250 per month without it affecting your standard of living, then you can do this AND gift the £3000 annual exemption.(for IHT)0
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jennifernil wrote: »But, if you have enough income to gift £250 per month without it affecting your standard of living, then you can do this AND gift the £3000 annual exemption.(for IHT)
Yes, gifts out of income exempt..... If same lifestyle etc maintained0 -
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All the above is correct, the only tax the recipient will pay is any interest / growth on the funds after they receive he money0
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Just be aware of the £100 rule iro interest earned on amounts from parents
http://www.hmrc.gov.uk/individuals/savings-income.htm0 -
AlwaysLearnin wrote: »Just be aware of the £100 rule iro interest earned on amounts from parents
http://www.hmrc.gov.uk/individuals/savings-income.htm
Yes - but only if the child is under 18 which may not be the case for the op as the child is working.0
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