Selling home and moving in with child

Albermarle

"How much can you gift a child tax-free UK? You can gift up to £3,000 per tax year tax free

This is absolutely typical of the very misleading way this subject is reported.

You can give a child, or anyone you like, as much money as a gift as you want, and there is no tax.

The only issue is that if you died within 7 years of making the gift, then that gift would be counted back into your estate for IHT Calculation purposes. This would only matter if your estate was likely to be liable for IHT anyway ( which the large majority are not)  and if you lived 7 years it would not be counted anyway.

In case your estate was likely to incur IHT then you can give away £3K pa to a child and even if you die within 7 years, this £3K would not be counted.

So there is NO Gift tax in the UK, only some rules to try and stop wealthier people avoiding IHT by giving large sums away when they are getting old/ill.

MarzipanCrumble

As I understand it your total exempt gifting per year is 3K - you can split it between more than one person.  This only applies if you are going to be liable for IHT when you die.  If you aren't, you can gift away.........always taking note of deprivation of assets, which is another whole can of worms......

Albermarle

MarzipanCrumble said:

As I understand it your total exempt gifting per year is 3K - you can split it between more than one person.  This only applies if you are going to be liable for IHT when you die.  If you aren't, you can gift away.........always taking note of deprivation of assets, which is another whole can of worms......

You can 'gift away' even if your estate will be liable for IHT.
Only that if you die within 7 years, the gifts ( above the annual £3K exemption) will be counted as part of your estate. Which they would have been anyway, if you had not gifted them in the first place.

You can not make yourself or your estate, more liable for IHT, by gifting.