Gift Allowance

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

Comments

  • pphillips
    pphillips Posts: 1,631 Forumite
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    edited 31 May 2020 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.
  • clonkel
    clonkel Posts: 37 Forumite
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    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_pedalling
    Keep_pedalling Posts: 16,607 Forumite
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    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_wellies
    in_my_wellies Posts: 1,647 Forumite
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    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
  • Mickey666
    Mickey666 Posts: 2,834 Forumite
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    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.

  • 74jax
    74jax Posts: 7,921 Forumite
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    You can gift however much you like, 3k is not a limit. 
    Forty and fabulous, well that's what my cards say....
  • Keep_pedalling
    Keep_pedalling Posts: 16,607 Forumite
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    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? 
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