Inheritance tax question

where_are_we

We help our children fund their high interest current accounts by monthly standing orders of usually £1000 in from us and then they return the £1000 a couple of days later. For inheritance purposes, does this count as gifting an annual £12000 to each child for each account?

noh

No. Because it is not a gift.

xylophone

It is a (very) short term loan rather than a gift?

kidmugsy

Just be sure to document it: write each other letters with details of the relevant bank accounts. It will be a great help to whoever is dealing with your affairs if you pop your clogs in the next seven years.

Newly_retired

I am not sure why you need to do this.
I circulate money between my own current accounts to qualify for interest and other incentives. I don’t need to involve anyone else.

I agree that in your situation you are talking about short term loans, not gifts, but it is a good idea to keep records.