Gifts and tax

zygurat789

CLAPTON wrote: »

of course not, no-one is advocate misleading HMRC however, I am particularly bad at keeping records about my expenditure

In which case you would be well advised not to claim it against any income on a tax return.

CLAPTON

zygurat789 wrote: »

In which case you would be well advised not to claim it against any income on a tax return.

I wasn't aware I could claim gifts to my offspring on a tax return.

I do find am a little better at keeping records that reduce my tax.

zygurat789

CLAPTON wrote: »

I do find am a little better at keeping records that reduce my tax.[/QUOTE]

But not if they would result in the correct liability?

fiscalfreckles

CLAPTON wrote: »

of course not, no-one is advocate misleading HMRC however, I am particularly bad at keeping records about my expenditure

Thanks all, some interesting replies.

My original point really (about proof of gifting) was prompted by the very real probability that an elderly relative would not keep any records other than bank statements.

CLAPTON

fiscalfreckles wrote: »

Thanks all, some interesting replies.

My original point really (about proof of gifting) was prompted by the very real probability that an elderly relative would not keep any records other than bank statements.

whilst my comments were partly meant somewhat lightheartedly,
realistically, the majority of people don't keep 7 years of bank statements especially as many of us bank online and do not receive paper copies.

getmore4less

The reality is that for most of the 500k that die each year it does not matter and for many where tracing PETS might it is not done because people just don't realise they should be doing them or the work involved out ways the benifits.

Only about 1/2 the estates each year get a grant and around 3% of all estates pay any IHT allthough there are around 8% that don't pay tax that are in the £300+ where the effect of PETS could change the tax status(below this would require larger pets and easier to find)



The one that probably gets overlooked offten is where the estate passes to the spouse and it is just assumed that 100% transferable nill rate band applies, any PETS would reduce this but how many go back 7 years looking for the odd £100 here and there just in case when the second person dies their estate exceeds the nill rate band that they should have.