Giving money to relatives

Ldp87

My parents want to give me some money towards home renovations and other living expenses. I understand you can only give £3000 tax free as a gift per year. Is a way around this to open a joint bank account, my parents deposit the money in there (£40'000), and then me withdraw the money as and when I need it?
Many thanks

comeandgo

The tax free amount would only be of any use if your parents die and there would be inheritance tax to pay, otherwise they can give any amount, unless it is done to reduce their assets to get benefits or as deprivation of assets.

Exodi

People are free to give whatever they want to whomever they choose.

As comeandgo says, it would only be an issue if it was expected that your parents are close to entering a care home or dying soon, and thus is a covert method of dodging care home fees/inheritance tax. The threshold for this is 7 years - assuming they are healthy, then there's no issue sending you the money now.

[Deleted User]

Hi,

if they didn't gift £3000 last year, then it can be carried forward.