tax free gifts

[Mallaig]

What is the limit tax free you can gift to family members per annum?

[dzug]

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.

[Mallaig]

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.

[dzug]

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.

[gezgibbons]

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?