Tax allowed gift to student child

Sandford1

Any advice on giving your student child the maximum “ gift” of money to help at university rather than having to pay tax on it? Thanks 

GrumpyDil

Who is trying to avoid tax. If it's you there isn't any way to divert your taxable income to your student child. 

Although you can give as much as you can afford, subject to possible inheritance tax liability.

Sandford1

Thanks, was just wondering how much I could gift an adult child in a tax year, thought was up to 3G 

silvercar

Annual exemption
You can give away a total of £3,000 worth of gifts each tax year without them being added to the value of your estate. This is known as your ‘annual exemption’.
You can give gifts or money up to £3,000 to one person or split the £3,000 between several people.
You can carry any unused annual exemption forward to the next tax year - but only for one tax year.
The tax year runs from 6 April to 5 April the following year.

The above are the rules for your gift to be outside of inheritance tax. This would only be relevant if you died within 7 years of the gift and your estate exceeded the Inheritance tax allowances.

You can also make regular gifts out of income, provided it doesn't impact on your standard of living. 

Other than the inheritance tax rules and deprivation of assets for benefit claimants, there are no restrictions on what you can give.