giving money to family.

otv

Hi people that know....

am in the fortunate position of being able to give my brother and sister some money each (10k) how should i go about this or will they be liable to taxes etc, does the 7 year law come into effect? one of htem in in oz :S

thank you peeps.

margaretclare

No, you don't pay tax on money received as a gift.

How to do it? A cheque will be fine.

Margaret

otv

what about if i pop off do they ahve to pay innhertance tax etc then

i have no plans to btw

Butlers1982

If you die within the next 7 years youll pay IHT!

Ian_W

Butlers1982 wrote: »

If you die within the next 7 years you'll pay IHT!

There's a bit more to it than that! :rolleyes:

Your Bro and Sis won't pay any tax but the gifts will count towards the value of your estate for 7yrs [though the amount is tapered down after 3 or 4 yrs] should you pop off unexpectedly.
Your estate will be subject to IHT if it's over £300k and you don't leave to a surviving spouse and you haven't a predeceased spouse whose allowance can be used etc, etc, etc.

Wouldn't worry too much about IHT, as you'll be dead :eek: - and they wont have to pay it, but may not inherit as much if they're your beneficiaries.

Hope that helps - and if you've any more spare, don't forget helpful posters!

Butlers1982

No, you don't pay tax on money received as a gif
t.

Even on £10k?

There's a bit more to it than that! :rolleyes:

I know but I didnt go into full detail!

Ian_W

Even on £10k?

Yup. You give me £10K, we'll declare it to HMRC as a pure gift and, if there's any tax to pay, I'll give you the £10K and the tax back - otherwise I keep it.

Deal? Or No Deal?