Gifts and inheritance tax

Madeinireland101

My wife and I keep a joint account. We give gifts to our children both within the annual limits and also potential exempt gifts. I fund the joint account in the main through my DB pension but my wife does contribute through SiPP, savings and investments.

Let’s say my wife contributes £20k and I gift £10k to each of our children as a PET from the account using that £20k . Does my wife need to document that she has gifted me £20k or will the transfer into our joint account suffice given that gifts between a husband and wife are already exempt? 

I’m sure I read somewhere that we don’t need to document that but I wasn’t sure. 

If we do have to document - can we draft a simple letter that states any such contributions made to the joint account can be considered as owned and used by either party without restrictions?

Thanks.

Brie

I believe that all she is doing is depositing money into an account for you both to use.  Nothing there about gifting.  

UnsureAboutthis

A joint account is just that and often, and often, you can take every penny out just with one of the two people the joint account belongs to.

Also, and I'm ready to be  corrected, anything you give to your wife/husband is IHT free is my understanding.

Keep_pedalling

I would treat any gifts from a joint account as joint gifts (50/50) regardless who puts the money into the account, at least as far as annual exempt gifts and PETS are concerned.  

pchelpman

Agreed to above but  - to add - ALWAYS make sure any gifts to people outside your marriage are clearly documented so there's no argument. Keeps everything clear.