Gifting money

Melmar

Hi, wish to gift some money to my children and gran children.
I think I'm correct in saying that I am allowed to give £8000. £4000 for this tax year and £4000 for the last tax year.
My question is this, am I allowed to only give £8000 across all the children or can I give them each £8000?


thank you for your help.

Dr_Teeth

There is no tax on gifts in the UK. There may be inheritance tax implications if you die in the next 7 years, but you'll be dead then so that doesn't really affect you.

Mojisola

Melmar wrote: »

Hi, wish to gift some money to my children and gran children.
I think I'm correct in saying that I am allowed to give £8000. £4000 for this tax year and £4000 for the last tax year.
My question is this, am I allowed to only give £8000 across all the children or can I give them each £8000?

You can give away £3000 each year which will be exempt from inheritance tax in the future.
https://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

If your estate isn't going to be liable for inheritance tax and deprivation of capital won't be an issue for you, you can give away what you want.

If you live for seven years after giving the money away, it will fall outside the inheritance tax rules.

Melmar

Thanks,


If I was to die within the 7 years that could cause my children a problem if I gave to much in one go.


This is why I want to give the max allowable each year to each of my children and Gran children.


Am I correct in thinking that I can give £8000 to four people now and then £4000 in the next tax year?

Melmar

Thanks Mijisola


Inheritance tax wont be an issue for me, I don't have that much. So if I understand you correctly I can give away as much as I like with out worrying about Tax.


thank you.

Mojisola

Melmar wrote: »

Inheritance tax wont be an issue for me, I don't have that much. So if I understand you correctly I can give away as much as I like with out worrying about Tax.

Yes but read up on "deprivation of assets/capital" - if you give away too much and then need to claim means tested benefits or need residential care, you could be assessed as still having the money you've given away.

dzug1

I thought it was £6000 (total, not each) now and £3000 next year, unless the limit has changed


And if your estate is under the limit 7 years is irrelevant anyway