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Gifting Money
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What are the rules for gifting money whilst i am still alive to my nephew?
do i or he pay tax, what are the amounts etc
i can't make head nor tail of the internet on this matter so any help would be welcome
thank you
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no tax liability for either party on the gift provided that you survive for seven years.
http://
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oo yeah I like being gifted money - can you make a cheque out to ....
Not quite the whole story.
You are allowed £3000 in one go per year.
You can makes as many £25 to the lesser nephews ( all different ) and sundry hangers-on as you like - per year
and the lesser known one - which a lot of people dont use for obvious reasons - is ANY amount so long as it comes out of income.
But you have to show that your standard of living has not dipped as a result. You can see that that exception could go badly wrong and I dont know anyone who;s done it
Other wise as woof - so long as your £355k exception HAS been used up in your will - which it may not have been.
actually yeah OK I can see why youre confused
So you can start off with three - kay whilst you are thinking
Are you married and are you feeling mortal ? Having had a years chemo within the last five years, I get my partner to write all large gift cheques on the grounds they are more likely to last seven years than me.
and ten out of ten out of ten for thinking ahead
and how can I do this tax free ?
You have realised that IHT is a voluntary tax
Repost if you cant understand any of this
alot of the usual suspects ( readers ) cant understand plain English
Not quite the whole story.
You are allowed £3000 in one go per year.
You can makes as many £25 to the lesser nephews ( all different ) and sundry hangers-on as you like - per year
and the lesser known one - which a lot of people dont use for obvious reasons - is ANY amount so long as it comes out of income.
But you have to show that your standard of living has not dipped as a result. You can see that that exception could go badly wrong and I dont know anyone who;s done it
Other wise as woof - so long as your £355k exception HAS been used up in your will - which it may not have been.
actually yeah OK I can see why youre confused
So you can start off with three - kay whilst you are thinking
Are you married and are you feeling mortal ? Having had a years chemo within the last five years, I get my partner to write all large gift cheques on the grounds they are more likely to last seven years than me.
and ten out of ten out of ten for thinking ahead
and how can I do this tax free ?
You have realised that IHT is a voluntary tax
Repost if you cant understand any of this
alot of the usual suspects ( readers ) cant understand plain English
// there is no such thing as tax paid on gifts.//
Oh dear the proper stuff may be incomprehensible
and there may be some very clear advice that is er wrong
I am certain you are thinking ahead about IHT
and gifts of large amounts are potentially-exempt-transfers under the current IHT legislation if made within seven years of death,
as I have described above.
In this case I regret you are going to have to make decisions on the postings and say you yourself - "good advice-bad advice".
And recollect advice you WANT to hear ( no tax dont be stupid ) may not be good advice....
Oh dear the proper stuff may be incomprehensible
and there may be some very clear advice that is er wrong
I am certain you are thinking ahead about IHT
and gifts of large amounts are potentially-exempt-transfers under the current IHT legislation if made within seven years of death,
as I have described above.
In this case I regret you are going to have to make decisions on the postings and say you yourself - "good advice-bad advice".
And recollect advice you WANT to hear ( no tax dont be stupid ) may not be good advice....
What you must NOT do is ...
Take regular, modest sums out of your bank account, the sort you'd spend on a meal out, and then give it to your nephew in cash.
The reason you must not do this is that the Inland Revenue will never know that you've given him the money, and won't be able to tax it, even if it is over the exempt limit.
So don't do that. Some people do it, but it's not actually allowed.
Take regular, modest sums out of your bank account, the sort you'd spend on a meal out, and then give it to your nephew in cash.
The reason you must not do this is that the Inland Revenue will never know that you've given him the money, and won't be able to tax it, even if it is over the exempt limit.
So don't do that. Some people do it, but it's not actually allowed.
ok, if I wanted to give my children £10k towards deposits on houses for example, who the heck would ever know? I'm not going to tell the tax man and the children certainly won't. Your nephew would be more liable to Capital Gains Tax than Inheritance Tax and he has a personal allowance of around £11,000 per year. I would just gift him an amount and not tell anyone. If its from your savings you've already paid enough Tax on it, stuff them.
OK I have waited a bit for other contributions
I cannot - I CANNOT agree with retrochics advice ( bad advice see below) as one of my relations has been investigated for tax fraud and I can tell you it is such a pain in the ass - really just dont go there ! ( it cost £10k to defend, tax not paid £1200 ).
well if it is IHT you are referring to:
look at this: it is a form your executors fill out and page one left column is the dreaded £3000 limit
http://
right.... here is the tax man's document on gifts
https:/
This doc is mostly about transferring shares and houses - rollover relief.
You have specifically defined money in your post
Half way down page one it gives the advice on IHT as a clickable link
which is this
http://
which gives a pretty depressing list....
but you need this
http://
actually it looks quite fun
I will have to have a re-read myself
In the last five mnutes I tried to find a simpler one
by googling 'IHT gifts out of income'
and it has taken my straight back to the IHT tax manual above
IHT exemptions are basically as I have said above
I cannot - I CANNOT agree with retrochics advice ( bad advice see below) as one of my relations has been investigated for tax fraud and I can tell you it is such a pain in the ass - really just dont go there ! ( it cost £10k to defend, tax not paid £1200 ).
well if it is IHT you are referring to:
look at this: it is a form your executors fill out and page one left column is the dreaded £3000 limit
http://
right.... here is the tax man's document on gifts
https:/
This doc is mostly about transferring shares and houses - rollover relief.
You have specifically defined money in your post
Half way down page one it gives the advice on IHT as a clickable link
which is this
http://
which gives a pretty depressing list....
but you need this
http://
actually it looks quite fun
I will have to have a re-read myself
In the last five mnutes I tried to find a simpler one
by googling 'IHT gifts out of income'
and it has taken my straight back to the IHT tax manual above
IHT exemptions are basically as I have said above
Sorry to be pedantic, PP ...
:0)
But of course you can hand over money out of income.
But if one had £50,000 in savings ...
One could easily withdraw £200 each day, for eating out, playing at the casino, going to see movies, etc.
But actually, hand it all over to one's nephew.
Within less than a year, you have given the whole £50,000 to one's nephew.
That is what one must NOT do, because the Inland Revenue can't see it to tax it, if you died.
:0)
But of course you can hand over money out of income.
But if one had £50,000 in savings ...
One could easily withdraw £200 each day, for eating out, playing at the casino, going to see movies, etc.
But actually, hand it all over to one's nephew.
Within less than a year, you have given the whole £50,000 to one's nephew.
That is what one must NOT do, because the Inland Revenue can't see it to tax it, if you died.
bhg they might report to the Tax office if i withdraw £10k (hardly likely however) but they have no idea what I'm doing with the money. I'm not going to get a knock on the door and someone asking me for proof I've bought a holiday, car, boat etc. Under the anonymity of this forum I can confess I've done this on numerous occasions, the most money ever withdrawn over £100k and no-one came looking for me from the HMRC, nor did I have to confirm where the funds were going.
