£3,000 allowance/birthdays

Hercules_Grytpype-Thynne

I see the other £3,000 allowance thread/query but rather than confuse the issue I hope it is OK to start another one, and my query is:-


I am giving my two children £3,000 per annum as that makes more sense to me so they can get the benefit now rather than later when they are the inheritors of our wills and will hopefully not be so needing of the money as they are now starting out.


What I would like to know is does money for birthdays count in that £3,000 or is it classed as it is..............a birthday gift OR would say a large Amazon voucher be allowable outside the £3,000?


Then if it is looked on as a separate gift, what is there to stop someone (I just know there is going to be something!) giving their child say £50,000 as a birthday present?

Linton

See HMRCs definition.

getmore4less

There is no birthday gift exemption.

You are probably thinking of gift from income.

https://www.gov.uk/inheritance-tax/gifts

Keep_pedalling

getmore4less wrote: »

There is no birthday gift exemption.

You are probably thinking of gift from income.

https://www.gov.uk/inheritance-tax/gifts

Although all small gifts for birthdays and Christmas are treated as gifts from income. It would be impossible to do it any other way.

getmore4less

Some see the £3k exemption as some magic No.

Giving more that £3k rarely makes any IHT situation worse.

If you won't be hitting IHT you can fairly safely ignore the limits anyway.

IF you don't have enough cash to give more so need to earn it using the gifts from income can be better.

Curlylady

Sorry Hercules, to piggy back on your query, I just posted reference winding up an estate of my late mother, I had intended to put some of the inheritance into my childrens accounts, about £5000 each, is this going to be questionable?

Keep_pedalling

Curlylady wrote: »

Sorry Hercules, to piggy back on your query, I just posted reference winding up an estate of my late mother, I had intended to put some of the inheritance into my childrens accounts, about £5000 each, is this going to be questionable?

No it is nor questionable, you can give away as much as you like. You should however keep a record of the gift as it remains in your estate for IHT purposes for 7 year. We keep a record of all our appropriate gifts with a copy of our will to make things simple for our executors.

Hercules_Grytpype-Thynne

Linton wrote: »

See HMRCs definition.

Good link, thank you.

Hercules_Grytpype-Thynne

getmore4less wrote: »

There is no birthday gift exemption.

You are probably thinking of gift from income.

https://www.gov.uk/inheritance-tax/gifts

As with Linton, thank you.:)

Hercules_Grytpype-Thynne

Curlylady wrote: »

Sorry Hercules, to piggy back on your query, I just posted reference winding up an estate of my late mother, I had intended to put some of the inheritance into my childrens accounts, about £5000 each, is this going to be questionable?

No problem .