Gifts To Family

[tooj]

I am now in a position to help my children and grandchildren with a cash gift
as Inand mywife are getting old. I have heard that I should only offer up to £3000
As there are seven of them does this mean each, or in total. and can Indo it each year?
Sorry I am not very clued up on these things

[Ken4155]

https://www.raisin.co.uk/taxes/gift-tax/

[Peter Pedant]

1. we are all getting old
2. yes ( or no) it is £3000 for one person in one year
3. every years ( £3000)
so that is £21 000 over seven years

BUT - you can do the little known loop of any amount so long as it is out of income, anddoes not impoverish you.

I am certain Raisin cover this

it is very wise ( necessary I would say) to document this at the time.

Otherwise, do the £21 000 bit and live for seven years
I do not see why if one of you die, the live one says - no I gave it.

[Peter Pedant]

comme ca baby

The normal expenditure out of income exemption applies to certain gifts. The most usual example is cash but in some circumstances the exemption can apply to chattels bought from income for the specific purpose of making the gift. The exemption is limited in amount only to the extent of a donor's (net) surplus income.

https://www.mercerhole.co.uk/wp-content/uploads/2019/07/bn_Gifts-out-of-income.pdf

and there is no charge for such valuable advice !

[davebro]

The thing is - how would "they" find out that I gave my valet a gift of £10,000 6 years before I died?

[bobbinwales]

You only need to worry about this if you have an estate that's big enough ( lots of moolah) that means you estate asto pay inheritance task. Most of us don't after pay inheritance tax. Look up the thresholds. You get a double allowance as you pass on yours when you die to your wife or she passes it on if she die's first

[Peter Pedant]

lorra lu-lu

estate grr than £325 000 - remember that passing to the old girl is free BUT of course when she passes on.....

[bobbinwales]

...it'll be £650000 which is a lorra lorra money unless there's an expensive house involved

[davebro]

//Most of us don't after pay inheritance tax.//

Bob - didn't you say somewhere that you are a millionaire? Or is my memory failing me again!

[Peter Pedant]

well you can clock up the £325 000 now if you want
it just gets knocked off your will before the 40% tax kicks in when yo die

above that there is the 7 y taper

[bobbinwales]

Davebro no i could'nt of said that as am nowhere near Iht factors. Am pretty sure its youngmafbog who as mentioned he is and that he used to earn well over 6 figures salary in a senior role. Fair play to him am sure his paid his taxes.

[SATaxAccountants]

7 years approx

https://sataxaccountants.co.uk/