How does gifting cash work?
- Thread starter Diagro
- Start date
Commissario
If the giver dies within seven years, the gift is considered part of the estate and taxed accordingly.
edit - I'm sure it's explained in many places, this is the first one I found after a very quick google
Gifting money to children explained (2024)
You can give money to your children tax-free up to certain limits. Find out how much you can gift to your children and the potential tax implications.
And the official gov.uk page
How Inheritance Tax works: thresholds, rules and allowances
Inheritance Tax (IHT) is paid when a person's estate is worth more than £325,000 when they die - exemptions, passing on property. Sometimes known as death duties.
I believe that generally you don’t pay tax on gifts but there can be inheritance tax implications.
www.gov.uk
How Inheritance Tax works: thresholds, rules and allowances
Inheritance Tax (IHT) is paid when a person's estate is worth more than £325,000 when they die - exemptions, passing on property. Sometimes known as death duties.
Soldato
- Joined
- 25 Sep 2012
- Posts
- 3,213
gift me some cash and ill tell you
Caporegime
The tax is higher if you are a man child iirc.
Isn't there some sort of 3k/2k tax free limit?
If after that I think there's some tapering of if you die under some amount (7?) years the beneficiary owe some IHT.
I think that's it? But not sure!
This vague answer may vaguely help.. Maybe
If after that I think there's some tapering of if you die under some amount (7?) years the beneficiary owe some IHT.
I think that's it? But not sure!
This vague answer may vaguely help.. Maybe
Yeah I don't think there's anything else.
My stupid parents were gifted the land their house is built in by my grandad.
With the inheritance battle that has ensued it was really important (and kind of depressing) that my grandad made 7 years.
Thankfully for my parents he did. And nothing was owed. It got messy. Very messy. Just luckily the land was done.
That's why I know a bit about it.
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Soldato
stick your bank details up and we will sort it for you
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Yes. .... Or are they? Dun dun duuuuuun
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If I were planning to evade tax, I would probably not outline my plans on a public internet forum.
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I'm not evading Tax.If I were planning to evade tax, I would probably not outline my plans on a public internet forum.
I'm being "tax efficient".
Also... Remove the quote please
Soldato
If I were planning to evade tax, I would probably not outline my plans on a public internet forum.
I looked into this not so long ago, here's an example of how it works. Sucks to be Sally's friend!
She gave 3 gifts in the 9 years before her death:
There’s also no Inheritance Tax to pay on the £325,000 she gave her sister, as this is within the Inheritance Tax threshold.
But her friend must pay Inheritance Tax on her £100,000 gift at a rate of 32%, as it’s above the tax-free threshold and was given 3 years before Sally died. The Inheritance Tax due is £32,000.
Sally’s remaining estate was valued at £400,000, so the estate would pay Inheritance Tax of 40% on £400,000 (£160,000).
How Inheritance Tax on a gift is paid
Any Inheritance Tax due on gifts is usually paid by the estate, unless you give away more than £325,000 in gifts in the 7 years before your death. Once you’ve given away more than £325,000, anyone who gets a gift from you in those 7 years will have to pay Inheritance Tax on their gift.Example
Sally died on 1 July 2022. She was not married or in a civil partnership when she died.She gave 3 gifts in the 9 years before her death:
- £50,000 to her brother 9 years before her death
- £325,000 to her sister 4 years and 2 months before her death
- £100,000 to her friend 3 years before her death
There’s also no Inheritance Tax to pay on the £325,000 she gave her sister, as this is within the Inheritance Tax threshold.
But her friend must pay Inheritance Tax on her £100,000 gift at a rate of 32%, as it’s above the tax-free threshold and was given 3 years before Sally died. The Inheritance Tax due is £32,000.
Sally’s remaining estate was valued at £400,000, so the estate would pay Inheritance Tax of 40% on £400,000 (£160,000).
Soldato
IT is a joke. Tax this, tax that...
Get all the cash out of the bank and stuff it into a suitcase! 
If the bank ask what it's for then they can say a gambling habit.
IHT is disgusting IMO and should only affect the very richest in society. Can't have the normies getting ahead, eh?
What disgusts me even more is that you can't leave a decent amount (anything over the threshold) to siblings or nephews/nieces without them getting hammered for tax - spouses and direct descendants or step-children only IIRC.
If the bank ask what it's for then they can say a gambling habit. IHT is disgusting IMO and should only affect the very richest in society. Can't have the normies getting ahead, eh?
What disgusts me even more is that you can't leave a decent amount (anything over the threshold) to siblings or nephews/nieces without them getting hammered for tax - spouses and direct descendants or step-children only IIRC.
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Soldato
Yeah premium bonds does affect you. When I signed up to JSA (jobseekers), I had to give up my premium bonds because otherwise it would have affected my JSA claim even though I only had £500 in there. No loss for me really because I've never won on them after so many years.