Gifting Money...

[paddy11]

I know it's been asked and answered time and time, but can anyone remind me how much we can 'Gift' to a family member per year? ta.

[trt]

This might help batman.

http://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1244607.html

[Buenchico]

You can give as much as you like, with no immediate tax consequences.

However if you die with an estate valued at over £325,000 there will be Inheritance Tax to be paid. For the purpose of calculating the value of your estate, most gifts within the past 7 years are included. However gifts of up to £3000 per annum are excluded from the calculation:
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

[factor-fiction]

Inheritance tax is a much misunderstood tax. Because the allowance for a married couple is effectively £650000 very few estates end up payng inheritance tax, and if they do it's only on the value above the threshold so it still leaves the bulk of the estate untouched.
It's also very easy to avoid by paying gifts from income.

[Peter Pedant]

I have got my tax law badly wrong at times....
but I still disagree with some of the posts

£3k a year - £250 in extra gloops to different people-
I imagine you wouldnt be asking if IHT werent an issue in your estate

I looked for the HMRC docket on this - v straightforward
however instead I have accessed the exciting HMRC manual on IHT
and it is here:
http://www.hmrc.gov.uk/manuals/ihtmanual/

wh I will spend the Xmas hols reading

Basically - any amount so long as you live seven y after transfer and do NOT retain benefit (like gift a house and go on living in it or even visiting it and sleeping in it AT ALL )

and gifts out of income - any amount - but it would be wise to show it is out of income to the donee ( lucky fellow you are giving it to)

are the two exceptions to the above rule.

20:01 Sun 08th Dec 2013Report
Avatar Image
Peter Pedant
Later

the ref is this

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#2

3k etc