What are the implications of giving 6k to an indebted family member?

Exodi

zurpher said:

y3sitsm3 said:

The same is potentially true for loans, you'd probably want to speak to a solicitor to ensure that it isn't treated as a "transfer of value."

Why do such things always have to be so complicated. 

Unfortunately, not everyone in this world has the best of intentions.

If there weren't these rules -

1) Charles Windsworth, who unfortunately has a terminal disease, has an estate worth 100 zillion pounds. Rather than have his heirs pay 40% tax when they inherit his estate, Charles 'gifts' everything he owns on his deathbed. Checkmate taxman, no tax payable on gifts.

2) Mr Drain has 20k in his savings account but is aware he will soon need care. Mr Drain would rather not pay for his own care, much preferring the taxpayer to instead - his kids have indicated that they'd prefer this also. He therefore 'gifts' everything he owns before he's put into a care home. Checkmate care homes, can't pay for care if you no longer have any money.