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Gifting children money
staro30
Posts: 33 Forumite
Hi,
I'd like to gift some money to my son. My house and savings are no where near the IHT threshold so can I give my son a lump sum of 20k without any future problems or is it just the 3k per year still?
Thanks
Staro
I'd like to gift some money to my son. My house and savings are no where near the IHT threshold so can I give my son a lump sum of 20k without any future problems or is it just the 3k per year still?
Thanks
Staro
0
Comments
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If your estate at time of death plus any gifts given within 7 years is below the nil rate band, i.e. £325k at time of writing, then no liability at all for IHT.0
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Depending on your age and health, deprivation of capital may be an issue.0
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Is your son a minor and unmarried? Will he earn an income on the capital?0
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There is no tax or limit on gifts in the UK, so you can give whatever you want to whoever you want without there being any immediate tax issue.
The £3k which many people think is a "limit" on gifts only applies to Inheritance Tax under certain circumstances which don't apply to may people anyway.
If all your assets are under the IHT limit, you can give whatever you want without any issues.
Even if it wasn't, then giving everything away now wouldn't create any immediate tax charge, and you would NEVER pay more IHT because you gave money away earlier.
Giving gifts away will make IHT either the same or lower than otherwise, but never higher.We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0 -
Its not the IHT you need to worry about but your future care etc needs - if you need to home care or need to go into a care/nursing home at some time in the future they may decide that you gave the money away to avoid it being used to fund your care - this is what the "deprivation of assets" comment about was about, so please look into this aspect too before you do anything.0
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Son is married. Is there a capital gains tax issue that I will pass on to my son? He may well use to fund a deposit for a house. Thanks for the other info0
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