Tax & Gifts to Family Members

[Bobbyboy]

What tax would my two sons need to pay on a cash gift of £12000 each in this current year?
If tax needs to be paid at what rate and is there a way around this?
Thanks.

[EXC]

If it's a cash gift there's no tax for them to pay providing you don't die in the 7 years after the transaction and so long as your children don't profit from investing the sum. Our family does it all the time.

[Bobbyboy]

As I understand it I can give upto £3000 from this years allowance and £3000 from last years allowance which would be tax free. Therefore I could today give £3000 to each of my sons in this current year 2000/2001 and a further £1500 on April 6th using 2001/2002 allowance.

Is this correct?

Reason I am asking is that my wife and I are in our 80's and who knows we might not survive 7 years.

What is the situation if I open an account in my wifes name and deposit £12,000 and do the same.

[EXC]

Reason I am asking is that my wife and I are in our 80's and who knows we might not survive 7 years.

Ah fair enough.

As I understand it I can give upto £3000 from this years allowance and £3000 from last years allowance which would be tax free. Therefore I could today give £3000 to each of my sons in this current year 2000/2001 and a further £1500 on April 6th using 2001/2002 allowance.

Is this correct?

As I understand it, yes.

What is the situation if I open an account in my wifes name and deposit £12,000 and do the same.

Not totally sure but I think the £3k annual allowance is per parent, so maybe that would be ok.

Some links:

Tax and gifting money to children - Saga

Gifts and exemptions from Inheritance Tax - Money Advice Service

As ever if you're not totally sure get some professional advice.

[Bobbyboy]

Thank you all for your advice, I am begining to believe having read thru the above and the link to the SAGA site that I have no need to worry.
Because as I now understand it when either of us dies our wills state that our estate goes to the other partner and therfore so does our a IHT allowance [£325k + £325k] £650k, which is above the total of our estate therefore there would be no tax to pay.
Am I correct on this, sorry to ask another question.

[EXC]

I'm not entirely sure. I've not really looked at it but Money Saving Expert might have the answer:

Inheritance tax: plan to legally save £100,000s on your estate - MoneySavingExpert