Cash gift fairness

Dakota_Deville

silvercar wrote: »

There is no tax on gifts in this country.

There definetly is on anything more than a few hundred quid.

Give the same to both and not tax worries as most parents give gifts - my brother gave many thousands to his children and never declred it but it's against the rules, look up gits/tax, you will be surprised.

ognum

Dakota_Deville wrote: »

There definetly is on anything more than a few hundred quid.

Give the same to both and not tax worries as most parents give gifts - my brother gave many thousands to his children and never declred it but it's against the rules, look up gits/tax, you will be surprised.

No there is not

McKneff

Dakota_Deville wrote: »

There definetly is on anything more than a few hundred quid.

Give the same to both and not tax worries as most parents give gifts - my brother gave many thousands to his children and never declred it but it's against the rules, look up gits/tax, you will be surprised.

This is England,.

There is no tax on Money gifts

BE TOLD.......

parking_question_chap

There is no tax on gifts.

POPPYOSCAR

Dakota_Deville wrote: »

There definetly is on anything more than a few hundred quid.

Give the same to both and not tax worries as most parents give gifts - my brother gave many thousands to his children and never declred it but it's against the rules, look up gits/tax, you will be surprised.

Only if you die before 7 years then it may be subject to inheritance tax, depending on the amount, but never income tax so the OP scenario is not relevant in the UK.

ognum

POPPYOSCAR wrote: »

Only if you die before 7 years then it may be subject to inheritance tax, depending on the amount, but never income tax so the OP scenario is not relevant in the UK.

This is correct but the tax would be paid by the giver from their estate not by the receiver of the gift

Dakota_Deville

ognum wrote: »

No there is not

Yes there is - can't beleive so many ignorant people here.
I will post in a few monets from tax site - I know as i paye tax on line and complete tax rets every year

= HERE

Thee is tax to pay - see criteria from HMRC site - we don't know the amounts the op is talking about so tax to pay subject to criter

3. Gifts
There’s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These are known as ‘exempted gifts’.

There’s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime - as long as they live in the UK permanently.

Other gifts count towards the value of your estate. There may be Inheritance Tax to pay if you’ve given away more than £325,000, but only if you die within 7 years.

Inheritance Tax on gifts is paid by the person who received the gift (the ‘beneficiary’) - not the estate.

What counts as a gift
A gift can be:

anything that has a value, such as money, property, possessions
a loss in value when something’s transferred, for example if you sell your house to your child for less than it’s worth, the difference in value counts as a gift
Call the helpline if you’re not sure.

Exempted gifts
You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great grandchild, £5,000 for a child)
normal gifts out of your income, for example Christmas or birthday presents - you must still be able to maintain your standard of living after making the gift
payments to help with another person’s living costs, such as an elderly relative or a child under 18
gifts to charities and political parties
You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you haven’t used another exemption on the same person.

The 7 year rule
If there’s Inheritance Tax to pay, it’s charged at 40% on gifts given in the 3 years before you die.

Gifts made 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

Dakota_Deville

Thee is tax to pay - see criteria from HMRC site - we don't know the amounts the op is talking about so tax to pay subject to criter

3. Gifts
There’s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These are known as ‘exempted gifts’.

There’s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime - as long as they live in the UK permanently.

Other gifts count towards the value of your estate. There may be Inheritance Tax to pay if you’ve given away more than £325,000, but only if you die within 7 years.

Inheritance Tax on gifts is paid by the person who received the gift (the ‘beneficiary’) - not the estate.

What counts as a gift
A gift can be:

anything that has a value, such as money, property, possessions
a loss in value when something’s transferred, for example if you sell your house to your child for less than it’s worth, the difference in value counts as a gift
Call the helpline if you’re not sure.

Exempted gifts
You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great grandchild, £5,000 for a child)
normal gifts out of your income, for example Christmas or birthday presents - you must still be able to maintain your standard of living after making the gift
payments to help with another person’s living costs, such as an elderly relative or a child under 18
gifts to charities and political parties
You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you haven’t used another exemption on the same person.

The 7 year rule
If there’s Inheritance Tax to pay, it’s charged at 40% on gifts given in the 3 years before you die.

Gifts made 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

Sea_Shell

Some would argue that Brother 2 should get a larger gift, as they have less, and that by Brother 1 accepting any gift he's being greedy.

ognum

Dakota_Deville wrote: »

Yes there is - can't beleive so many ignorant people here.
I will post in a few monets from tax site - I know as i paye tax on line and complete tax rets every year

= HERE

Thee is tax to pay - see criteria from HMRC site - we don't know the amounts the op is talking about so tax to pay subject to criter

3. Gifts
There’s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These are known as ‘exempted gifts’.

There’s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime - as long as they live in the UK permanently.

Other gifts count towards the value of your estate. There may be Inheritance Tax to pay if you’ve given away more than £325,000, but only if you die within 7 years.

Inheritance Tax on gifts is paid by the person who received the gift (the ‘beneficiary’) - not the estate.

What counts as a gift
A gift can be:

anything that has a value, such as money, property, possessions
a loss in value when something’s transferred, for example if you sell your house to your child for less than it’s worth, the difference in value counts as a gift
Call the helpline if you’re not sure.

Exempted gifts
You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great grandchild, £5,000 for a child)
normal gifts out of your income, for example Christmas or birthday presents - you must still be able to maintain your standard of living after making the gift
payments to help with another person’s living costs, such as an elderly relative or a child under 18
gifts to charities and political parties
You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you haven’t used another exemption on the same person.

The 7 year rule
If there’s Inheritance Tax to pay, it’s charged at 40% on gifts given in the 3 years before you die.

Gifts made 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

There is no tax on gifts. They may be taxed on a sliding scale should you die wishing 7 years.

I have given away many thousands of pounds, all accounted for through my accountant. NO tax is payable!