giving money away

willywonka1

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.

Yes right.

Willy

willywonka1

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.

Hi there,

Right get it, the gift and her estate "is" less than the threshold, so no one pays tax on the gift, thank you.

Willy

Steve_xx

willywonka1 wrote: »

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

I think you have one "0" too many there!!! It now reads one million, five hundred thousand pounds.

willywonka1

Steve_xx wrote: »

I think you have one "0" too many there!!! It now reads one million, five hundred thousand pounds.

Sorry, it's £150000.

Willy

Mojisola

willywonka1 wrote: »

Sorry, it's £150000.

Unless she is keeping a lot of money for herself, then deprivation of capital might be a problem.

You can't give away a lot of money and then expect means tested benefits or care to be paid by the taxpayers.

Steve_xx

Mojisola wrote: »

Unless she is keeping a lot of money for herself, then deprivation of capital might be a problem.

You can't give away a lot of money and then expect means tested benefits or care to be paid by the taxpayers.

Where did the poster mention that "means" tested care was on the agenda?

mike88

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.

How else can you turn £50k into £100k through investment other than the stockmarket? Is the fact nobody else has mentioned relevant? Surely it is not inappropriate to point out that the OP's aim to make £50k from a £50k investment is unrealistic.

Steve_xx

mike88 wrote: »

How else can you turn £50k into £100k through investment other than the stockmarket? Is the fact nobody else has mentioned relevant? Surely it is not inappropriate to point out that the OP's aim to make £50k from a £50k investment is unrealistic.

What I'm saying is that you have read more into the original question than was/is there. The question was not relating to the methodology used to make the money. The question was, is it ok to mum to give it to her son, and are there any tax implications for mum or son in doing so.

You've introduced a whole new ball game into the equation and this has been borne out of whatever is in your mind rather than anything to do with what the poster originally asked about.

thistledome

She could have bought a council flat in London years ago.

atush

Steve_xx wrote: »

Where did the poster mention that "means" tested care was on the agenda?

No, they didn't mention it.

But as the person giving the money is over 80- it is a Relevant fact and the consequences should be discussed?