Gifting to son

Colmorg

I understand I'd have to pay tax on cash I gave to my son,  what would this be on £20,000?  

Dazed_and_C0nfused

Where do you get that understanding from?

[Deleted User]

Colmorg said:

I understand I'd have to pay tax on cash I gave to my son,  what would this be on £20,000?  

Exactly zero. 

DullGreyGuy

Colmorg said:

I understand I'd have to pay tax on cash I gave to my son,  what would this be on £20,000?  

Zero, as long as you live more than 7 years after giving the gift.

There can be non-tax issues if you are depriving yourself of assets and subsequently need to claim benefits or go into care etc.

[Deleted User]

DullGreyGuy said:

Colmorg said:

I understand I'd have to pay tax on cash I gave to my son,  what would this be on £20,000?  

Zero, as long as you live more than 7 years after giving the gift.

There can be non-tax issues if you are depriving yourself of assets and subsequently need to claim benefits or go into care etc.

There is no tax to pay by either party whether the donor lives for seven years or not. Tax would only be payable BY THE ESTATE if the donor does not live for seven years AND its value is sufficient to attract inheritance tax. That value could be up to 1 million. 

Keep_pedalling

No tax, but it would be treated as deprivation of assets as far as means tested benefit is concerned.

https://forums.moneysavingexpert.com/discussion/6420421/savings-and-uc#latest

Colmorg

Keep_pedalling said:

No tax, but it would be treated as deprivation of assets as far as means tested benefit is concerned.

https://forums.moneysavingexpert.com/discussion/6420421/savings-and-uc#latest

For how long? 

diystarter7

Colmorg said:

I understand I'd have to pay tax on cash I gave to my son,  what would this be on £20,000?  

Hi OP
Have you gifted in recent years cash/property etc annd if so what was the worth of that and when
If you are frial and feel you may end up in a care home, consider deprevation of assests.

However, if non of the above applies, then unlike you pay tax becuse of the 7-year rule as it stands. Please look up 'tax on gifts, IHT' etc

https://www.gov.uk/inheritance-tax

Thanks

Jeremy535897

Not all gifts are automatically caught by these rules. The burden of proof is on the council to show that avoiding care fees is the sole or a significant factor in making the gift. In addition, the council cannot argue the point if, at the time of the gift, the donor is fit and healthy and could not have foreseen the need for care. The issue is discussed in great detail here:
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs40_deprivation_of_assets_in_social_care_fcs.pdf

sheramber

The OP previously asked about UC being stopped if you have too much savings.  

diystarter7

sheramber said:

The OP previously asked about UC being stopped if you have too much savings.  

Thank you Coloumbo

OP, check the gov benefits site re benefits and giving cash away if the above is the possible scenrios

Either way, good luck

Thanks