3k gifting to family members

RSVP2000

Hello,
Are son and daughter in-laws eligible for the 3k gifting allowance? Or is it limited to children and grandchildren?

Thanks in advance

Rodders53

Anyone.  No relationship necessary.  Keep Records for your Executors to use.

NB You can gift any amount to anyone at any time.  It's just that the amount may fall back into your Estate for IHT calculation purposes based on the rules when you die.

FlorayG

You can give your money to anyone. The limit is on the amount and not relevant to who gets it

Keep_pedalling

There is no such thing as a gifting allowance, it is an exemption. You can gift as much away as you like but only £3k of those gifts is not subject to the 7 year rule. You can also make additional exempt gifts of £250 to as many other people as you like.

So for example every year we each gift our son and daughter £1,500 and gift an additional £250 to our SIL & DIL, so each couple get £3,500 which passes out of our estates at the point of giving. In years where we gift more the extra goes to our son and daughter and becomes a potentially exempt gift (PET) which will fall out of our estate in 7 years. The £3k exemption can be given to anyone not just direct descendants. 

RSVP2000

Thanks everyone for the prompt replies.

silvercar

Keep_pedalling said:

There is no such thing as a gifting allowance, it is an exemption. You can gift as much away as you like but only £3k of those gifts is not subject to the 7 year rule. You can also make additional exempt gifts of £250 to as many other people as you like.

You can also make regular gifts out of income. I have been paying monthly into a help to buy ISA in the name of each of my children.

Keep_pedalling

silvercar said:

Keep_pedalling said:

There is no such thing as a gifting allowance, it is an exemption. You can gift as much away as you like but only £3k of those gifts is not subject to the 7 year rule. You can also make additional exempt gifts of £250 to as many other people as you like.

You can also make regular gifts out of income. I have been paying monthly into a help to buy ISA in the name of each of my children.

As long as it is excess income. You also need to keep very good records of both your income and expenditure otherwise your executors will struggle to claim it.

Newly_retired

And the rules may change in the next budget.