How Much Can You Gift Aid In A Tax Year.

[UK44]

Inheritance tax question - How much can you gift aid to your children and grand children in a tax year in the UK. If the children are earning will this effect the amount they can receive?

[sandyRoe]

Isn't 'Gift Aid' a charitable thing? A gift to children, grandchildren, or anyone else isn't taxed.

[dzug2]

Nothing - gift aid relates to charities, nothing to do with inheritance tax

You can give them as much as you like - as long as you survive 7 years from the date of the gift - or leave an ultimate estate (including the gifts) under the IHT threshold if you die earlier

[boxtops]

I think you are thinking of something else - Gift Aid only applies to charities who can claim back the tax you pay.

I think you mean Gifts Inter Vivos ? http://en.wikipedia.org/wiki/Inter_vivos

[UK44]

Yes but surely there are some financial rules? Otherwise families would just gift aid all there savings, house etc to their children over time to get around paying inheritance tax?

[ubasses]

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

The above site makes it all clear, I assume you mean gifts free from tax or inheritance tax.

[alavahalf]

Never mind the guesswork ... have a look here ... straight from the horses mouth.
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

[pixie373]

I heard £3000 per year, but hopefully someone will be able to confirm or deny that.

[boxtops]

I can't remember from the days when I used to work in insurance, but there is a tax liability if you should die during the seven year period - I remember that we used to sell GIV policies to cover that eventuality.

I know you can't give money away in an attempt to avoid e.g. nursing home fees, that's not allowed.

[Peter Pedant]

No no no

Gift aid is to registered charities - and used to be limitless but may well be down to £25 000 per year. Records should be kept and you should be paying tax
(you cant giftaid if you pay no tax)

Giving to your children and grandchildren without IHT liability is different
(altho I agree that giving to them is in fact.. er ,, aiding them)

and is dealt with here
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

read it


it is something like £250 to each child in addition to the aggregated £3000/y
grandchildren less

marraige of children more

simple really

Remember these are out of capital

so long as you can show convincingly it is out of income - then any amount so long as it does not decrease your life style - see the sheet - a commonly forgotten rule

[UK44]

Ok, thanks your right. I mean "Inter Vivos" by giving a gift amount to your children.

[Peter Pedant]

and someone has recollected that any amount so long as you survive 7 years after the gift.

and someone else asks - do parents spent their lives giving to their kids and totting up the total to avoid tax ? yup they sure do

get it wrong and they pay (actually the estate pays) 40 %

[ThinkIFA]

You can gift your child £3000 per year or £10000 if in anticipation of marriage.
You can also gift other people (friends etc) £250 and their is no limit to the amount of people you can gift to.