Capital gains

moneysavingaddict07

Sorry inadvance if this is in the wrong thread,
Can on-one advise me the following..
My sister is old enough to have her own ISA account. I thought I will give her £3000 to start off with then another £3000 next tax year and continue to carry on funding her accounts every year until she finishes uni and finds herself a job.
Am I liable to any tax for lending her this money?
I have copy and paste some information from the HMRc website on this matter.Is this out of date? Is there a maximum amount you can give to someone in your family?

Thanks.

What assets do not lead to a CGT charge?

Some assets are exempt. For example, you will not have to pay CGT on

• your private car
• cash held in sterling
• any foreign currency held for your own or your family's personal use
• jewellery, paintings, antiques and other personal effects that are individually worth £6,000 or less (if you have a set, for example a set of chess figures - you do not pay CGT if the value of the set as a whole is £6,000 or less)
• Savings Certificates, Premium Bonds and British Savings Bonds
• UK Government stocks ("Gilts")
• assets held in an Individual Savings Account (ISA) or Personal Equity Plan (PEP)
• betting, lottery or pools winnings
• personal injury compensation.

http://www.hmrc.gov.uk/leaflets/cgtfs1.htm

debbie42

You seem to be mixing CGT with possible inheritance tax issues (gifts etc.) and also say that it's a gift to your sister, but then later say you're lending it to her? Are you effectively wanting to use her ISA allowance for your savings?

You might be better off asking on the Tax forum for more detailed info.

moneysavingaddict07

debbie42 wrote: »

You seem to be mixing CGT with possible inheritance tax issues (gifts etc.) and also say that it's a gift to your sister, but then later say you're lending it to her? Are you effectively wanting to use her ISA allowance for your savings?

You might be better off asking on the Tax forum for more detailed info.

Yes and no is the answer, I do wanna start her off with a savings account so when she comes out of uni and into her job, she can repay me back as well as carry on adding £3k into her ISa account (with my money in there from previous year). I'll ask the tax people

RayWolfe

What's the purpose of the account? You either give her the money which she puts into an ISA and/or spends as she wishes, or you are getting a tax benefit in her name which is tax evasion and illegal.