Financially supporting my parents

scls

Hi! 

I have graduated from uni and started working some while ago. As my income is getting more stable, I am thinking to pay/ give back/ gift (whatever it calls) some money to my parents regularly.  Anyone knows if my parents will be taxed for the money? Will it contribute to and eventually be taxable for IHT? I will be taxed for earning but not sure will this amount of money have to be double or even triple taxed. 

I am doing it because growing up they have been paying for my tuition and stuffs. They can financially support themselves but I wish to do it as a gesture of gratitude.  

Thanks xx

Stubod

..In general there is no tax to pay on these types of gifts..

barnstar2077

I would tread carefully though.  This is a really nice thing that you want to do, but your parents reaction may not be what you expect.  Maybe broach the subject first with them, say how you would like to be able to pay them back someday and see what they say about it.

squirrelpie

Stubod said:

..In general there is no tax to pay on these types of gifts..

As long as the gifts are not too large, I think it's right that there is no tax to be paid on the receipt of the gift. But if their estate is large enough then any money that they haven't spent will be part of their estate and will count towards IHT if it applies. So I personally wouldn't give my parents (your-choice-of-deity rest their souls) money they didn't intend to spend.

Marcon

A quick bit of googling would have got you where you needed to go: https://www.gov.uk/inheritance-tax/gifts

zagfles

squirrelpie said:

Stubod said:

..In general there is no tax to pay on these types of gifts..

As long as the gifts are not too large, I think it's right that there is no tax to be paid on the receipt of the gift. But if their estate is large enough then any money that they haven't spent will be part of their estate and will count towards IHT if it applies. So I personally wouldn't give my parents (your-choice-of-deity rest their souls) money they didn't intend to spend.

Indeed - if they save it and you inherit it, you might end up paying IHT on your own money!

Socajam

If they do not already have Premium Bonds, open an account in their name and starting buying bonds for them - you buy the bonds every quarter.
Do you have siblings?

zagfles

Socajam said:

If they do not already have Premium Bonds, open an account in their name and starting buying bonds for them - you buy the bonds every quarter.
Do you have siblings?

You can't buy premium bonds for another adult unless you've got power of attorney

scls

barnstar2077 said:

I would tread carefully though.  This is a really nice thing that you want to do, but your parents reaction may not be what you expect.  Maybe broach the subject first with them, say how you would like to be able to pay them back someday and see what they say about it.

I talked to them and they don’t mind. Just want to be sure about the money matters

Socajam

zagfles said:

Socajam said:

If they do not already have Premium Bonds, open an account in their name and starting buying bonds for them - you buy the bonds every quarter.
Do you have siblings?

You can't buy premium bonds for another adult unless you've got power of attorney

She can speak to them and if they agree open the account in their name, setup a standing order

whizzywoo

Do they have a dream holiday they would love to go on?  Maybe this is something you could pay for and they could make some lovely memories with it?