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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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OK back to gifting
Daily Telegraph article from 2004 on gifts out of income and IHT
http://
Daily Telegraph article from 2004 on gifts out of income and IHT
http://
Here is the tax mans advice on gifts as capital gain
http://
The question was how much can breadstick give her nephew
The answers are as above but she now has to pick out the good stuff from the really c**p advice being offered.
If she gives the nephew £3000 this year and as bhg says £3000 over from last year there is no tax to be paid CGT or IHT by either party
if she has SOLD something to get the £3k, that she bought x years ago for £1k then ther may be CGT payable on that ( if she also disposed of > £10k other assets in that year)- but that is CGT on the something and not really CGT on the gift.
http://
The question was how much can breadstick give her nephew
The answers are as above but she now has to pick out the good stuff from the really c**p advice being offered.
If she gives the nephew £3000 this year and as bhg says £3000 over from last year there is no tax to be paid CGT or IHT by either party
if she has SOLD something to get the £3k, that she bought x years ago for £1k then ther may be CGT payable on that ( if she also disposed of > £10k other assets in that year)- but that is CGT on the something and not really CGT on the gift.
Breadie - all us olds think that tax should paid only once on money we have earned
oh no no no that isnt how things work.
Think VAT - every transaction - the tax man may take his share
Oh by the way I have a frozen chicken, do you want to come over later this afternoon....
You certainly have the idea - IHT is a voluntary tax and there are a variety of ways not to pay it.
If your question was about CGT and gifting money to your nephew - easy one - no tax for either party to pay.
oh no no no that isnt how things work.
Think VAT - every transaction - the tax man may take his share
Oh by the way I have a frozen chicken, do you want to come over later this afternoon....
You certainly have the idea - IHT is a voluntary tax and there are a variety of ways not to pay it.
If your question was about CGT and gifting money to your nephew - easy one - no tax for either party to pay.
Oh God Breadie it is all here !
https:/
I was looking naturally around the much more difficult site HMRC and getting all sorts of pages I didnt recognise
Bernie - the answer is the Northolt case which I will post later on when I find it. Nephew claimed everything in a joint account and the courts held for tax purposes the money and account was partitioned. So tax was due on the death of the joint holder
https:/
I was looking naturally around the much more difficult site HMRC and getting all sorts of pages I didnt recognise
Bernie - the answer is the Northolt case which I will post later on when I find it. Nephew claimed everything in a joint account and the courts held for tax purposes the money and account was partitioned. So tax was due on the death of the joint holder
We have established that there is no tax liability to the donor or recipient on any gifts.
But it still isn't clear to me from all this whether breadstick's estate is likely to be close to the IHT threshold of either £325000 or £650000.
If she isn't then her estate is not going to be subject to iHT so she can gift what she likes without any tax considerations being necessary. If the estate does exceed the threshold then the estate (not breadstick) will pay any IHT, and there will be some tax liability on the estate for gifts in the last 7 years which exceeded the figures set out in this thread.
But it still isn't clear to me from all this whether breadstick's estate is likely to be close to the IHT threshold of either £325000 or £650000.
If she isn't then her estate is not going to be subject to iHT so she can gift what she likes without any tax considerations being necessary. If the estate does exceed the threshold then the estate (not breadstick) will pay any IHT, and there will be some tax liability on the estate for gifts in the last 7 years which exceeded the figures set out in this thread.
breadstick it a man in his 30's so it seems less likely IHT will come into the equation at all, and in fact, the question doesn't seem to be about IHT at all, but what tax is payable on a gift given to his nephew and who pays it (answer = none and no-one)
As pp says, the op will have to sort the wheat from the chaff of answers and decide for himself which answers to heed though.
As pp says, the op will have to sort the wheat from the chaff of answers and decide for himself which answers to heed though.
as we muse vaguely as to what your question really means
another thing came up today on the thread Capital Gains Tax
Suppose X wants to give money to Y his nephew - X sells his house and gives some or all to Y. So far so good, no tax to pay unless X doesnt survive seven years when IHT comes in.
Y uses the money to buy a house and X comes and lives in part of it.
From X's point of view - the house is a "pre-owned asset" and will be counted as part of X's estate when he dies.
Breadie if you are a man in your thirties -w ell done for thinking about tax charges. I cant get my nephew ( same age) to fill out a tax form ! let alone think about wills and succession
another thing came up today on the thread Capital Gains Tax
Suppose X wants to give money to Y his nephew - X sells his house and gives some or all to Y. So far so good, no tax to pay unless X doesnt survive seven years when IHT comes in.
Y uses the money to buy a house and X comes and lives in part of it.
From X's point of view - the house is a "pre-owned asset" and will be counted as part of X's estate when he dies.
Breadie if you are a man in your thirties -w ell done for thinking about tax charges. I cant get my nephew ( same age) to fill out a tax form ! let alone think about wills and succession
