giving money away

mike88

Steve_xx wrote: »

You've read far more into this question than was there. The OP asked a question about tax implications of transferring funds from mother to son. Now you've managed to read into that that he's encouraging her to have a bet!


The simple answer to his question is that his mother can give him what she likes within the confines of his original question. He will not have to pay income tax on the gift, but he would have to pay tax on any interest it earned if he banked it. If she dies within 7 years of the gift being made then the amount of the gift will be taken into account and if her total estate inclusive of the gift is greater than £325k then there may be some Inheritance Tax to pay. The amount that would have to be paid would reduce over the 7 year period.

Really! The original poster stated:

"No, she who is over 80, had 50,000 in the bank, invests it, its then 100,000 pays CGT, then gives it to her Son, is that legal, would the Son have to pay any tax."

If this isn't self explanatory I don't know what is. I posted this link in my reply.

Steve_xx

mike88 wrote: »

Really! The original poster stated:

"No, she who is over 80, had 50,000 in the bank, invests it, its then 100,000 pays CGT, then gives it to her Son, is that legal, would the Son have to pay any tax."

If this isn't self explanatory I don't know what is. I posted this link in my reply.

Yes but it says nothing about him "encouraging" her to invest it. He implies that she already has the 100k, not that he's planning to encourage her to invest 50k and turn it into 100k.

mike88

Steve_xx wrote: »

Yes but it says nothing about him "encouraging" her to invest it. He implies that she already has the 100k, not that he's planning to encourage her to invest 50k and turn it into 100k.

I read it as though she had £50k in the bank and was planning to invest to increase the sum to £100k so that he could be given the profit and the enquiry was about the tax implications of the profit.

Steve_xx

mike88 wrote: »

I read it as though she had £50k in the bank and was planning to invest to increase the sum to £100k so that he could be given the profit and the enquiry was about the tax implications of the profit.

In post #13 he says she "had" 50k.


Nowhere does he mention that he was "encouraging" her invest her "life savings" in the stock market.

mike88

Steve_xx wrote: »

In post #13 he says she "had" 50k.


Nowhere does he mention that he was "encouraging" her invest her "life savings" in the stock market.

We agree she had £50k in the bank. It might or might not have been her life savings but an 80 year old speculating on the stock market is possibly not the ideal scenario especially as the original poster is assuming the amount will increase. As you know stock markets can rise or fall.

Steve_xx

mike88 wrote: »

We agree she had £50k in the bank. It might or might not have been her life savings but an 80 year old speculating on the stock market is possibly not the ideal scenario especially as the original poster is assuming the amount will increase. As you know stock markets can rise or fall.

Nobody, except you, has mentioned anything about stock market investment for this money. You have, as they say, gone off on a tangent.

Philis_Burrell

Eco_Miser wrote: »

Post #2 gives a very full answer.
The short answer is the recipient of a gift pays no tax on that gift. The donor may in some circumstances (death or benefits claim) be treated as still having the money.

Seems to be the simplest answer possible.

willywonka1

mike88 wrote: »

If you believe you can invest £50k and turn that into £100k with little or limited knowledge then you should also be thinking of the more likely event of what would happen if £50k turned into £30k.

Encouraging an 80 year old to invest their life savings in the stockmarket in the belief that a quick buck can be made is unrealistic and misguided.

Hi there,

Yes you are right.

Or I could put it another way, a Mother wants to give her Son £1500000, from her bank account to his, would anyone be taxed?

Willy

willywonka1

Philis_Burrell wrote: »

Seems to be the simplest answer possible.

Thank you all.

Willy

willywonka1

Steve_xx wrote: »

Nobody, except you, has mentioned anything about stock market investment for this money. You have, as they say, gone off on a tangent.

Yes right gone off the mark a bit.

Willy