£100k gift to a friend

Sprocker101

Hi all,

Are there any tax implications with me 'gifting' £100k to a friend. Would either of us be liable to pay tax?

Many thanks

Generali

Sprocker101 wrote: »

Hi all,

Are there any tax implications with me 'gifting' £100k to a friend. Would either of us be liable to pay tax?

Many thanks

If it's a genuine gift then the only tax implication I am aware of is if you died within 7 years of giving your friend the money. If you died within that time then the money would be considered as part of your estate for inheritance tax purposes.

Why do you put the word 'gift' in inverted commas like that? It makes it appear that this isn't really a gift.

SeniorSam

Sprocker101,

The 7 year rule would only be looked at if the estate value at death, including any gifts in the preceeding 7 years, were to exceed the nil rate band allowance

Sam

Sprocker101

Thanks for the replies. As I expected really. A genuine gift, Generali.

Cheers.

csgohan4

Can I be that friend?

Alter_ego

Sprocker101 wrote: »

Hi all,

Are there any tax implications with me 'gifting' £100k to a friend. Would either of us be liable to pay tax?

Many thanks

Hope you're not approaching a need to claim means tested benefits or care home fees.

thenudeone

There is not tax on gifts in the UK of any amount so there is no tax to pay for either of you due to the gift itself; although giving something away which has appreciated in value (eg: a house) may create a Capital Gains Tax liability, and there may be IHT implications mentioned above.