If I gave someone 20k.....

I wasnt aware cash gifts were taxable, its like your parents giving you some money for a gift or event, you wouldnt pay tax on it, as long as its a genuine gift. Might look a tad shady if you are the MD of a Ltd company and just happen to gift a friend 20k, it may look as if you are paying for services and they are trying to get out of paying tax on it but im sure you wouldnt be that nieve :)
 
Nothing, unless you dies within 7 years, I think. Then it becomes subject to IHT.

Or something like that, anyway.

Gifts may be taxable if they are over a certain amount. My folks have talked about giveing me their house, so that we don't have to pay IHT when they kick the bucket. Not sure if you can still do it as they have not gone though with it.
 
There will be some stealth tax somewhere and christ even more so now the government is bankrupt!
 
The gift would be tax free unless you die within 7 years AND your estate is valued at more than the current IHT threshold (inc. the gift), in which case their gift would be subject to IHT.
 
Just say you'll take it/give it in cash. Problem solved

I'm sure the bank wouldnt ask questions if you deposited £1,000 here and there
 
[DOD]Asprilla;15142721 said:
Nothing, unless you dies within 7 years, I think. Then it becomes subject to IHT.

Or something like that, anyway.

Gifts may be taxable if they are over a certain amount. My folks have talked about giveing me their house, so that we don't have to pay IHT when they kick the bucket. Not sure if you can still do it as they have not gone though with it.
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Yes they can sign the house over to you to also stop the government using their house as payment for any care they may need later in life, iirc you have to wait quite a few years before it becomes effective aswell, my parents signed the house over to me around 2 years ago for this reason and IHT reasons and im sure its around 6-10 years before it kicks in as to speak.
 
Pretty sure there is no ‘government’ protection racket scheme on personal cash gifts, AKA taxation as theft..

But might want to check with the powers that be, or as suggested the CAB.
 
schnipps said:
Yes they can sign the house over to you to also stop the government using their house as payment for any care they may need later in life, iirc you have to wait quite a few years before it becomes effective aswell, my parents signed the house over to me around 2 years ago for this reason and IHT reasons and im sure its around 6-10 years before it kicks in as to speak.
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If your parents still live in the house, it's still taxable under IHT rules - whether or not the gift was made 7 years ago. Yes, it's 7 years.

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

Though you're probably right that they can't count it as an asset for means-testing purposes.
 
It doesn't come under IHT rules if it's a Birthday, Christmas or Wedding gift.

Proving it was a gift of that type is based on when the transaction was made. IIRC it needs to be made within 2 weeks either side of a Birthday or Wedding, and in December for a Christmas present.
 
Mr^B said:
It doesn't come under IHT rules if it's a Birthday, Christmas or Wedding gift.

Proving it was a gift of that type is based on when the transaction was made. IIRC it needs to be made within 2 weeks either side of a Birthday or Wedding, and in December for a Christmas present.
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Only wedding gifts qualify for iht exemption, and the limits as way below 20k.

Op - is it just cash you're planning on giving? If so, the only issue is iht if you die within 7 years, as said. You're not receiving anything in return are you? If so. There could be income tax or capital gains tax issues for the person receiving the money. Is it a loan? Will you be getting interest? If so, that will be taxable.

If it's a straight out bona fide gift of cash then the only tax in point would be iht.

I'm a tax adviser btw.
 
Mr^B said:
It doesn't come under IHT rules if it's a Birthday, Christmas or Wedding gift.

Proving it was a gift of that type is based on when the transaction was made. IIRC it needs to be made within 2 weeks either side of a Birthday or Wedding, and in December for a Christmas present.
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Source? You can give £5000 to your daughter or son IHT free at their wedding but I've not heard anything about Christmas or a Birthday.

schnipps said:
Yes they can sign the house over to you to also stop the government using their house as payment for any care they may need later in life, iirc you have to wait quite a few years before it becomes effective aswell, my parents signed the house over to me around 2 years ago for this reason and IHT reasons and im sure its around 6-10 years before it kicks in as to speak.
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If they still live there you're gonna get charged. They need to move out.
 
vonhelmet said:
Only wedding gifts qualify for iht exemption, and the limits as way below 20k.

Op - is it just cash you're planning on giving? If so, the only issue is iht if you die within 7 years, as said. You're not receiving anything in return are you? If so. There could be income tax or capital gains tax issues for the person receiving the money. Is it a loan? Will you be getting interest? If so, that will be taxable.

If it's a straight out bona fide gift of cash then the only tax in point would be iht.

I'm a tax adviser btw.
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Thanks Von,
Straight out cash, nothing in return.

seems to back up what I have been reading.
 
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