Annual "Gift" rules.

Hi...As a couple, can my wife and I gift £3,000 jointly , separately to our 2 children ...each ...you know what I mean!! thanks

Comments

  • Bluebirdman_of_Alcathays
    Bluebirdman_of_Alcathays Posts: 2,859 Forumite
    edited 14 October 2016 at 1:50PM
    You can gift whatever you like - there is no gift tax in the UK. If it is IHT you are worried about, yes you can each gift 3k to either of your children each tax year. How much is your estate worth?
  • HappyHarry
    HappyHarry Posts: 1,554
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    ipri wrote: »
    Hi...As a couple, can my wife and I gift £3,000 jointly , separately to our 2 children ...each ...you know what I mean!! thanks

    You can each gift £3,000 to one person and £250 to anyone else. These gifts would be exempt from inheritance tax.

    There are other exemptions regarding regular gifts from income.

    You can give away as much as you like without any immediate tax implications. However, if death of the donor occurs within seven years, then any non-exempt gifts can be bought back into the estate for inheritance tax purposes.

    If your estate would not qualify for inheritance tax, then it is all completely irrelevant as no inheritance tax will be paid, regardless of gifts.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • ipri
    ipri Posts: 649 Forumite
    edited 14 October 2016 at 1:11PM
    £1m ish thanks


    PS Happyharry and bluebirdman seem to offer different amounts able to gift!
  • HappyHarry
    HappyHarry Posts: 1,554
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    ipri wrote: »
    £1m ish thanks


    PS Happyharry and bluebirdman seem to offer different amounts able to gift!

    I would imagine Bluebirdman has just made a typo.

    Each person can give an exempt gift of £3,000 to one person per tax year. If this exemption is not utilised, it can be carried forward one year.

    Each person can then give an exempt gift £250 to anyone else (but NOT to the person who has received £3,000).

    A couple with 10 children could not give exempt gifts of £3,000 to each child each year.

    Here is a link that may help: http://www.which.co.uk/money/tax/guides/inheritance-tax-explained/inheritance-tax-planning-and-tax-free-gifts/
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • Also not mentioned is not just tax, but care costs, as most local authorities look to gifts over this when deciding if a person has dissipated assets.
    I didn't do it, nobody saw me do it, you can't prove a thing! ;)
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  • CLAPTON
    CLAPTON Posts: 41,865
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    ipri wrote: »
    £1m ish thanks


    PS Happyharry and bluebirdman seem to offer different amounts able to gift!

    give us a clue

    are you concerned about IHT
    are you concerned about dying in the next 7 years
    is much of the £1 million in property?
  • apologies for typo - corrected!
  • ipri
    ipri Posts: 649 Forumite
    Quite happy that giving 2 kids money for houses / weddings in future and a bit self indulgence the total will fall bellow 2020 threshold.
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