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Tax & Gifts to Family Members

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  • Tax & Gifts to Family Members

    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.
    Tags: None

  • #2
    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.

    I like your pin shot
    I keep it with your letter
    Done up in blueprint blue
    It sure looks good on you
    And when you smile for the camera
    I know I'll love you better

    Then the shutter falls
    You see it all in 3-D
    It's your favorite foreign movie

    'Peg'

    Donald Jay Fagen

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    • #3
      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.

      Comment


      • #4
        Originally posted by Bobbyboy View Post
        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.










        I like your pin shot
        I keep it with your letter
        Done up in blueprint blue
        It sure looks good on you
        And when you smile for the camera
        I know I'll love you better

        Then the shutter falls
        You see it all in 3-D
        It's your favorite foreign movie

        'Peg'

        Donald Jay Fagen

        Comment


        • #5
          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.
          Last edited by Bobbyboy; 23rd February 2021, 15:33:PM.

          Comment


          • #6
            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

            I like your pin shot
            I keep it with your letter
            Done up in blueprint blue
            It sure looks good on you
            And when you smile for the camera
            I know I'll love you better

            Then the shutter falls
            You see it all in 3-D
            It's your favorite foreign movie

            'Peg'

            Donald Jay Fagen

            Comment

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