Help with gifting money please.

sparkiemalarkie

Hi, I was wondering if the following was acceptable / tax free
If I gift £3000 to my husband can he then gift £3000 to our son without tax implications?
Can I then gift £3000 to the same son?

tia

sx

TadleyBaggie

There are no immediate tax implications if you or your husband gift any amount. The only tax implication is if the gift is over £3000 and the person gifting dies with 7 years.

sparkiemalarkie

TadleyBaggie said:

There are no immediate tax implications if you or your husband gift any amount. The only tax implication is if the gift is over £3000 and the person gifting dies with 7 years.

Thank you... even if I have gifted it to my husband in the first place?

I have not made any money gifts last tax year 2022-2023 other than birthdays and Christmas (in a pattern that has happened for years) can I back date a £3000 gift at all for 'unused years' ?

tia

sx

[Deleted User]

sparkiemalarkie said:

TadleyBaggie said:

There are no immediate tax implications if you or your husband gift any amount. The only tax implication is if the gift is over £3000 and the person gifting dies with 7 years.

Thank you... even if I have gifted it to my husband in the first place?

I have not made any money gifts last tax year 2022-2023 other than birthdays and Christmas (in a pattern that has happened for years) can I back date a £3000 gift at all for 'unused years' ?

tia

sx

There are no tax implications for either the donor or the recipient as there is no tax on gifts in the U.K. 

Indeed you can gift as much as you want without tax implications for either party. 

The only consideration is that when you pass away the gift can be included in your estate but ONLY if it exceeds £325000, £650000 if a spouse hadn’t made full use of his or her NIL rate band, and up to £1 million if you own a property. 

In addition to that gifts to spouses do not attract any tax whatsoever. 

Grumpy_chap

You can gift any amount to anybody at anytime.
Gifting can never increase the potential IHT liability.

You do need to have consideration for potential DoA (Deprivation of Assets) with regard to any potential means-tested benefits or care costs that may be relevant.

Albermarle

sparkiemalarkie said:

TadleyBaggie said:

There are no immediate tax implications if you or your husband gift any amount. The only tax implication is if the gift is over £3000 and the person gifting dies with 7 years.

Thank you... even if I have gifted it to my husband in the first place?

I have not made any money gifts last tax year 2022-2023 other than birthdays and Christmas (in a pattern that has happened for years) can I back date a £3000 gift at all for 'unused years' ?

tia

sx

You can give as much as you like to who you like. Millions if you like .There is widespread misunderstanding about gifts. The only implications are 
1) Once you have given someone the money, they might not give it back if you ask !
2) If you died within 7 years of making the gift, AND you were well off enough that your estate was liable for inheritance tax, then gifts you made would be counted back into your estate for IHT calculations.

Regarding Point 2) £3K of gifts each year would be disregarded for IHT purposes, which is where the misunderstanding comes in as there is nothing to stop you giving a lot more . For sure no direct tax on any gift.

You can not in any way increase your liability for inheritance tax ( or any other tax ) by making big gifts.

xylophone

No problem with your gifting £3000 to your husband - no tax implication there.

It then becomes his money and he can do whatever he likes with it.

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