Gifts to spouse

aggieboy_2

There's no IHT to pay on gifts between spouses. If I give my wife £6k does it immediately become hers to use as she sees fit?
 I'm thinking about giving her the money so she can then use it as her £3k x 2 years allowance to give to our daughter. 

Keep_pedalling

Yes you and she can do that. As an aside the £3000 is an exemption not an allowance, you can gift as much as you like, but any non exempt gifts are subject to the 7 year rule. 

penners324

There's no iht between spouses

aggieboy_2

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

Keep_pedalling

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

aggieboy_2

Keep_pedalling said:

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

My thinking is that if we gift from the joint account then £6k is my wife's. Whereas if I give £6k to my wife who then uses her £6k allowance it is 'all from me' and I'm the one with excess money. 

Keep_pedalling

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

My thinking is that if we gift from the joint account then £6k is my wife's. Whereas if I give £6k to my wife who then uses her £6k allowance it is 'all from me' and I'm the one with excess money. 

Sorry, I was thinking of the full £12K, but if you have already made your gift then yes the best option is for you to transfer £6k to your wife and then she makes the gift to your daughter. Next financial year you could make a single joint gift. 

aggieboy_2

Keep_pedalling said:

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

My thinking is that if we gift from the joint account then £6k is my wife's. Whereas if I give £6k to my wife who then uses her £6k allowance it is 'all from me' and I'm the one with excess money. 

Sorry, I was thinking of the full £12K, but if you have already made your gift then yes the best option is for you to transfer £6k to your wife and then she makes the gift to your daughter. Next financial year you could make a single joint gift. 

Thanks for replying again.
No, I haven't gifted yet. I'm saying £12k from the joint means £6k will literally be my wife's money. But if I give her £6k and she then gifts it, then in effect I've  given the £12k to my daughter. 

Keep_pedalling

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

My thinking is that if we gift from the joint account then £6k is my wife's. Whereas if I give £6k to my wife who then uses her £6k allowance it is 'all from me' and I'm the one with excess money. 

Sorry, I was thinking of the full £12K, but if you have already made your gift then yes the best option is for you to transfer £6k to your wife and then she makes the gift to your daughter. Next financial year you could make a single joint gift. 

Thanks for replying again.
No, I haven't gifted yet. I'm saying £12k from the joint means £6k will literally be my wife's money. But if I give her £6k and she then gifts it, then in effect I've  given the £12k to my daughter. 

No it does not work like that, once you give money to your spouse it is theirs to do whatever they want with it. Likewise if you put £12k into a joint account then it is a joint asset. It does not matter which way you do this each of you will be gifting £6k each. 

If you currently hold all of the savings within your marriage you should also consider changing that to reduce your potential tax burden. 

aggieboy_2

Keep_pedalling said:

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

Keep_pedalling said:

aggieboy_2 said:

penners324 said:

There's no iht between spouses

I understand that and have written it on my original post. It was more to do with the fact of whether she could use it to immediately gift it to our daughter as her 2 year (£3+£3) IHT exemption. Therefore giving our daughter £12k as I'll do the same

If you have a joint account you can also simply make a joint gift directly from that.

My thinking is that if we gift from the joint account then £6k is my wife's. Whereas if I give £6k to my wife who then uses her £6k allowance it is 'all from me' and I'm the one with excess money. 

Sorry, I was thinking of the full £12K, but if you have already made your gift then yes the best option is for you to transfer £6k to your wife and then she makes the gift to your daughter. Next financial year you could make a single joint gift. 

Thanks for replying again.
No, I haven't gifted yet. I'm saying £12k from the joint means £6k will literally be my wife's money. But if I give her £6k and she then gifts it, then in effect I've  given the £12k to my daughter. 

No it does not work like that, once you give money to your spouse it is theirs to do whatever they want with it. Likewise if you put £12k into a joint account then it is a joint asset. It does not matter which way you do this each of you will be gifting £6k each. 

If you currently hold all of the savings within your marriage you should also consider changing that to reduce your potential tax burden. 

Ah, crossed wires here. I think you're saying I should put my full £12k into the joint account and we can then gift the £12k together using each of our 2 x £3k allowance? That's a better idea if allowed. 

i was referring to taking it straight out of our joint as it stands (we have the £12k in it but I wasn't thinking and obviously you weren't aware of that)  My wife would then be using her money ie £6k of it would be hers, not the money I've given her. 
Thanks again for your help. I appreciate it.