Income tax relief on non-charitable gifts as giver?

AdviceWelcome

Hi,

I understand that I can give my kids up to £3,000 in this tax year without being impacted by inheritance tax and capital gains tax issues (as long as I survive for another 7 years).

And similarly the kids are not going to be impacted by income tax issues.

What I wondered though is - will a personal gift of this nature reduce my personal taxable income and result in lower personal tax bill for me as the giver?

Thanks.

Keep_pedalling

No it does not.

getmore4less

booksurr wrote: »

The 7 year rule relates to sums over £7,000

Where does that £7k come from?

Any gift not coverd by the various exemptions would be come a PET which could fail within 7 years.

CLAPTON

AdviceWelcome wrote: »

Hi,

I understand that I can give my kids up to £3,000 in this tax year without being impacted by inheritance tax and capital gains tax issues (as long as I survive for another 7 years).

And similarly the kids are not going to be impacted by income tax issues.

What I wondered though is - will a personal gift of this nature reduce my personal taxable income and result in lower personal tax bill for me as the giver?

Thanks.

you can give gifts totaling 3k per annum without them being PETs for IHT purposes;
you can also bring forward from last year 3k if you gave nothing then
your legal spouse can also give 3k (plus 3K) too.

you can give different individuals 250 each without limit.

you can give regular gifts from income

cgt doesn't come into it nor does income tax

only charitable gifts reduce your income tax

Darksparkle

What age are the kids?

xylophone

http://www.thisismoney.co.uk/money/experts/article-1695395/Whats-the-IHT-limit-on-3000-gifts.html

http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm14180.htm

What I wondered though is - will a personal gift of this nature reduce my personal taxable income and result in lower personal tax bill for me as the giver?

No.

If the children are unmarried minors see http://www.hmrc.gov.uk/manuals/saimmanual/saim2430.htm