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tax free gifts

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Mallaig | 21:43 Fri 27th Jan 2006 | Business & Finance
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What is the limit tax free you can gift to family members per annum?
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There is no limit - gifts are not taxable.


There is a potential for Inheritance Tax if you die within 7 years of making the gift though - is this what you had in mind? I think that is �3K (not sure if that is total or per person), no limit if it is to your spouse.

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Thank you for your answer. What I mean is how much cash can an individual give/gift/transfer to a family member(s) in any tax year without incurring a tax liability.

At the time of the gift, there is no tax liability of any sort whatever the size of the gift.


If the person making the gift dies within 7 years and his total estate (including any gifts, but with exceptions for small gifts) falls above the Inheritance tax threshold, then there can be a tax liability then. IHT is a complex subject - this is only a very much oversimplified account of it. The threshold is �285,000 as of next April.

I have a follow on question


If you were to give a sum of money to your child (who was over 18) would they then be taxable on the gift they have received? Is this subject to standard income tax laws?

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