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Gifting to children

I want to gift £10k to my child so she can pay off debts (credit cards, store cards, etc.) Can I just transfer money from an isa into her account without tax liability to either she or I?

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 15 July 2021 am31 10:18AM
    Yes. Just try to avoid dying in the next 7 years, or there will potentially be inheritance tax to pay on it by your estate.
  • Brie
    Brie Posts: 13,470 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    And ask/tell her to get rid of the credit cards so you don't need to repeat this in a couple of months/years. (been there/done that)
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  • Keep_pedalling
    Keep_pedalling Posts: 19,294 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Yes. Just try to avoid dying in the next 7 years, or there will potentially be inheritance tax to pay on it by your estate.
    But if she did not make the gift IHT could (if the OPs estate is big enough) be due on it indefinitely. There is no IHT downside to gifting unless you go mad and give so much away there is not enough in the estate to pay the bill.
  • ZaSa1418
    ZaSa1418 Posts: 651 Forumite
    500 Posts Third Anniversary Name Dropper
    If you are worried about the potential IHT could you not just call the companies and pay them all off instead? 
    LBM Debt Total : £48,326.50

    Pay All Your Debt Off By Xmas 2023 - #50  £1,495.29 / £12,000.00
    Saving For Christmas 2023 - £1 a day challenge - #6 £100/£1095.00
  • MattMattMattUK
    MattMattMattUK Posts: 10,176 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    ZaSa1418 said:
    If you are worried about the potential IHT could you not just call the companies and pay them all off instead? 
    That amounts to the same thing as gifting the money into the child's account then the child paying it off.
  • macman
    macman Posts: 53,128 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Unless you trust her 100% to clear the debts, then pay them off direct yourself.
    No free lunch, and no free laptop ;)
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