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Gifting from Income - Timescales
Hal17
Posts: 379 Forumite
I am trying to understand the timescales when allocating gifts from income. I appreciate it can be a bit of a grey area, but I have read that you have a two year carry forward period before excess income is classed as capital by HMRC.
Does that mean that excess income for this tax year 2025-2026 can be given away this tax year and that any surplus not used can be carried to tax year 2026-2027.
Or does it mean you have two tax years going forward after this current tax year? Appreciate any thoughts.
Does that mean that excess income for this tax year 2025-2026 can be given away this tax year and that any surplus not used can be carried to tax year 2026-2027.
Or does it mean you have two tax years going forward after this current tax year? Appreciate any thoughts.
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Comments
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It is a bit of a grey area, so my advice would be to avoid doing it. The important thing to do is to establish a pattern of regular so start gifting your surplus income ASAP, I can’t see any point in not gifting this financial year’s surplus in this financial year.1
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Ha ha that makes perfect sense, thank you. I was over thinking it, why carry anything forward.
Cheers 0
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