Cash gift fairness

peachyprice

Person_one wrote: »

Well, he has started a Donald Trump appreciation thread in DT...

Says it all.

getmore4less

AS the money is in your estate before you gift it rather than saying "added to the value" of your estate a better way to look at gifts is they are not removed from your estate unless they fall into one of the exempt categories(from income, £3k annual, £250 small...) or are 7 years old.

DigForVictory

The OP wishes to give gifts.

Please do so & be scrupulously fair - the same amount to each (and a mental bonus percentage for how promptly you get thanked).

Were impoverished brother 2 to ask for help to get the maximum from this gift, I'd be directing him to this site that he might learn the best ways to make a single pound go that bit further.

Sounding-a-little-too-entitled brother 1 can have his gift & sort his own tax affairs. Cheeky piece.

"It's not fair" is the vocabulary of the *child*, & a loving (and generous) parent does not reward childishness in grown up children.

I suppose you *could* give double the amount to brother 2 & say "I leave it to him to divide this between you"?! <as eldest of three I should not suggest deliberately causing inter-sibling fuss, but Really.>

Dakota_Deville

Keep_pedalling wrote: »

The OP was talking about tax paid by the recipient of gift, which as everyone except you has correctly pointed out that no such tax exists. Just because the word gift appears in your cut and paste does not make it relevent as the context is totally different.

Donald Trump may think you can have alternative facts, but in the real world there are no such things.

Tax is payable by someone at the very least if declared on tax return and the gifter dies within 7 years or has assests over 325000.

We will agree to disagree as I hate conflict and some of the posts aimed at me for trying to help here at not nice at all.

Guest101

parentx wrote: »

Hi all,

Need some opinions on cash gifting:

Two brothers are set to receive a cash gift. Brother1 is on a substantially higher yearly income than brother2.

Brother1 expects to encounter a tax bill from the gift and that the extra tax to be paid on his cash gift (that brother2 won’t encounter) so that the net income from both gifts is the same.

Personally I can see his point but brother2 was mortified by this so just wanted to get a feel for others opinions before I fully made up my mind on the matter.

Obviously the actual answer is to do what I want or not gift at all if there is squabbling but for the purposes of this exercise let’s assume those options are not on the table.

Thanks in advance for any replies

ParentX

Tax isn't payable on gifts....

Malthusian

Dakota_Deville wrote: »

Tax is payable by someone at the very least if declared on tax return and the gifter dies within 7 years or has assests over 325000.

Not correct. Firstly it's "and" rather than "or": if you die within seven years but your assets plus gifts within the last seven years are under £325,000, there's no tax to pay.

Moreover it is more complicated than that - if someone was married and recently gave £324,999 to their child while leaving £1 million to their spouse, no tax would arise. (£324,999 exempt as within the nil rate band, £1 million exempt as inherited by spouse.)

We will agree to disagree as I hate conflict and some of the posts aimed at me for trying to help here at not nice at all.

If you don't understand the rules then it would create less conflict if you didn't contradict those that do.

The OP was clearly talking about tax at the point of receipt of a gift (and as mentioned, there is no such tax in the UK), not on their death.

Malthusian

To answer the OP's question:

Brother1 is on a substantially higher yearly income than brother2.

Irrelevant.

Brother1 expects to encounter a tax bill from the gift and that the extra tax to be paid on his cash gift (that brother2 won’t encounter) so that the net income from both gifts is the same.

Assuming that Brother1 lives in a foreign country which does apply such a tax on the receipt of gifts - irrelevant. He chose to live there.

I can't answer the question about fairness, because fairness is a non-existent concept invented so children and idiots could participate in debates. What is equal, and what would make me happy in the OP's shoes, would be to gift them the same gross amount.

Brother1's tax affairs are not my problem, nor is Brother2's choice of occupation.

LilElvis

Person_one wrote: »

Well, he has started a Donald Trump appreciation thread in DT...

..... and it looks likely that he comes from Brighton .....:D

Keep_pedalling

Dakota_Deville wrote: »

Tax is payable by someone at the very least if declared on tax return and the gifter dies within 7 years or has assests over 325000.

We will agree to disagree as I hate conflict and some of the posts aimed at me for trying to help here at not nice at all.

You are wrong again, IHT would only be payable if the giver died within 7 years AND the estate was over the nil rate band (which could be up to £650,000 in the case of a widow or widower)

None of this goes on anyone's tax return, it would be declared by the executor on form IHT400.

If you don't want conflict then I would advise you not to start a post calling people ignorant, just because they point out that you are wrong.

ognum

Dakota_Deville wrote: »

Tax is payable by someone at the very least if declared on tax return and the gifter dies within 7 years or has assests over 325000.

We will agree to disagree as I hate conflict and some of the posts aimed at me for trying to help here at not nice at all.

So, you quote me in a previous post and say I am ignorant and then suggest you hate conflict, very funny!

You are wrong, no tax is payable

You were not 'trying to help' you were being abusive.