Annual "Gift" rules.
ipri
Posts: 649 Forumite
in Cutting tax
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
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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?0
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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.0 -
£1m ish thanks
PS Happyharry and bluebirdman seem to offer different amounts able to gift!0 -
£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.0 -
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!
Quidco and Topcashback, £4,569
Shopandscan, £2,840
Tesco Double The Difference, £2,700
Thomson EU261/04 Claim, £1,700
British Airways EU261/04 Claim, EUR12000 -
apologies for typo - corrected!0
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Quite happy that giving 2 kids money for houses / weddings in future and a bit self indulgence the total will fall bellow 2020 threshold.0
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