New Post Advanced Search

Gift Allowance

7 replies 134 views
clonkelclonkel Forumite
16 posts
10 Posts Name Dropper
Hi, my wife and I have separate bank accounts. If we want to make a gift of the allowable £3000 do we have to take £1500 from each account?
Also, we did not make a gift in the last tax year so are we now able to give £6000 this year?

thank you very much

Replies

  • edited 31 May at 8:53PM
    pphillipspphillips Forumite
    1.1K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭
    edited 31 May at 8:53PM
    The annual gift allowance is not shared between you and your wife, so you can each give £3000 per tax year (£6000 max). You should pay the gifts out of your own accounts.
    However, if you didn't use last year's gift allowance you can each give £6000 (£12,000 max).
    There is also a small gift allowance of £250 per person per tax year, this can only be used for those who were not given money from the annual allowance.
  • clonkelclonkel Forumite
    16 posts
    10 Posts Name Dropper
    That is brilliant thank you for your help. No matter how many times I read the information I kept thinking it was £3000 joint. 
    Thanks again very helpful
  • Keep_pedallingKeep_pedalling Forumite
    8.1K posts
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    clonkel said:
    Hi, my wife and I have separate bank accounts. If we want to make a gift of the allowable £3000 do we have to take £1500 from each account?
    Also, we did not make a gift in the last tax year so are we now able to give £6000 this year?

    thank you very much
    It is not an allowable amount, you can gift as much like, and anything above the allowance stays for 7 years in your estate as far as IHT is concerned.
  • in_my_welliesin_my_wellies Forumite
    1.1K posts
    Part of the Furniture 1,000 Posts
    ✭✭✭
    As a follow up, do I need to keep a record of these gifts? I keep bank statements. Who would ask to see them after a death?
    Love living in a village in the country side
  • Mickey666Mickey666 Forumite
    695 posts
    500 Posts Name Dropper
    ✭✭
    It would be the executor of the deceased's estate who is responsible for such things as going through bank statements.  However, I'm not sure if an executor can demand to see anyone's bank statements other than the deceased's ones.

  • 74jax74jax Forumite
    5.8K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    You can gift however much you like, 3k is not a limit. 
    Forty and fabulous, well that's what my cards say....
  • Keep_pedallingKeep_pedalling Forumite
    8.1K posts
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    As a follow up, do I need to keep a record of these gifts? I keep bank statements. Who would ask to see them after a death?
    Yes, it will make your executors job a lot easier than trawling through 7 years of bank accounts.

    Is your estate likely to to be in IHT territory? 
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support