Are Trainers Ok For Long Walks?
Body & Soul2 mins ago
How much money can I give away
to my children without penalties being imposed? I think there is a limit but I am not sure what it is. And is it an overall figure or can I give it equally to each of them?
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You can give away as much as you like - there is no gift tax in the Uk.
The 'penalties' are in the form of liability to inheritance tax if you die within 7 years AND your estate, including the gifts, is above the limit of £350K
Disregarded for IHT are any number of gifts of £250 a year to different people and one gift of £3000.
The 'penalties' are in the form of liability to inheritance tax if you die within 7 years AND your estate, including the gifts, is above the limit of £350K
Disregarded for IHT are any number of gifts of £250 a year to different people and one gift of £3000.
You can give away as much as you like. Simply make sure that you don't die within 7 years of doing so!
If you die within 7 years of making monetary (or other) gifts, the value of those gifts (or part of that value, depending upon the period which has elapsed since the gift was made) can be taken into account when assessing whether your estate is liable for Inheritance Tax. If the value of your estate would come to less than £325,000 (using the current threshold) anyway, there would be no IHT to pay.
Further, you can give away a TOTAL of up to £3,000 per year without that amount being included in any assessment for IHT. If you don't use the full allowance in any year, the residue of that allowance can be added to what you're allowed to give a away, free of IHT considerations, in the following year (but only for that year - you can't transfer it forward beyond then).
http://www.hmrc.gov.u...ey-property/index.htm
Chris
If you die within 7 years of making monetary (or other) gifts, the value of those gifts (or part of that value, depending upon the period which has elapsed since the gift was made) can be taken into account when assessing whether your estate is liable for Inheritance Tax. If the value of your estate would come to less than £325,000 (using the current threshold) anyway, there would be no IHT to pay.
Further, you can give away a TOTAL of up to £3,000 per year without that amount being included in any assessment for IHT. If you don't use the full allowance in any year, the residue of that allowance can be added to what you're allowed to give a away, free of IHT considerations, in the following year (but only for that year - you can't transfer it forward beyond then).
http://www.hmrc.gov.u...ey-property/index.htm
Chris
Thanks very much for your very prompt answers, dzug2 and Chris. I am planning to give my two children some money in the near future but did not want them to be penalised when I die. If I count the probable value of my house I think it will be just under £300K, so looks as if I should be able to do it with no repercussions. Thanks again.
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What's to stop someone withdrawing all their money and just sharing the cash among their kids - it's "off the radar" so to speak, and no penalties? If they then spend the cash as and when, who would know? If it's your money, you should be able to do with it as you wish.
I'm not very legally-minded so someone may spot some flaws with that method...
I'm not very legally-minded so someone may spot some flaws with that method...
Wrong thread, honey33.
The issue of taxation of interest may also be relevant here. Whilst children have the normal personal allowance which means they don't normally pay tax, any interest of over £100 pa from gifts by a parent is taxable and the tax is charged to the parent. See here for more details.
http://www.hmrc.gov.uk/tdsi/children.htm
The issue of taxation of interest may also be relevant here. Whilst children have the normal personal allowance which means they don't normally pay tax, any interest of over £100 pa from gifts by a parent is taxable and the tax is charged to the parent. See here for more details.
http://www.hmrc.gov.uk/tdsi/children.htm
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