parental gifting allowance

sparkybean

Hi I am intending to gift my daughter £6000 this tax year, made up of last year and this year £3000 tax allowance. Is this exempt from the 7 year inheritance tax rule and can my wife do the same or is the allowance for a joint parental allowance? Also does it matter if the gifts are from a joint account. Thanks for considering these questions, I am confused

Keep_pedalling

This is not an allowance (you can gift as much as you like), it is an exemption to the 7 year rule.

It is also an individual exemption, so yes your wife can also do the same. You can do this as a single payment from your joint account.

Albermarle

We are doing the same this month, as we did not take advantage of it in the last tax year. So both my wife and I are separately giving offspring £6k each.

However we will be giving a much bigger sum as help to a house deposit sometime this year. In this case whoever gives it will have to last 7 years before it is not counted still for IHT purposes.

sparkybean

thank you 'Albermarle' and 'Keep-pedalling' exact answer I needed much appreciated

Yorkie1

Albermarle said:

However we will be giving a much bigger sum as help to a house deposit sometime this year. In this case whoever gives it will have to last 7 years before it is not counted still for IHT purposes.

My parents gave me help with my house deposit; dad died within 7 years, so if I remember rightly, half of the value was put down for probate purposes.