How does gifting cash work?

koolpc said:
If a 'relative' took £100k out of their bank as cash and gave it away, how would the tax people know who it was given to?
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This is true.

However, it is my understanding that details of any transaction, linked to a personal bank account, over £20k are automatically sent to HMRC. So they would be aware you withdrew £100k. If then, by chance, your family members start depositing more than £20k into their accounts it isn't rocket science to work out what has occurred.
 
Hussman said:
This is true.

However, it is my understanding that details of any transaction, linked to a personal bank account, over £20k are automatically sent to HMRC. So they would be aware you withdrew £100k. If then, by chance, your family members start depositing more than £20k into their accounts it isn't rocket science to work out what has occurred.
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Forewarned is forearmed!
 
Narj said:
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.
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It does only affect the richest in society...

Assuming both of your parents pass down their home then the threshold increases to a million. If you're due to inherit a million then you're generally classed as 'rich'. Only 18% of households in the UK have assets of £1m+.

But don't let facts get in the way of a good rant eh ;)
 
koolpc said:
Buy gold and give that to family. No receipts. Nothing. If tax people ask, it was all gambled away or given to charity anonymously!

No way the government should get any percentage of inheritance money or money gifted.
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And how would those family members go about spending that gold?

You can't slap a few gold coins down at the til in Tescos. If you wandered into a gold traders, they don't just handover cash without paperwork.

I guess you could always go to Shady Dave down by the docks.
 
Semple said:
It does only affect the richest in society...

Assuming both of your parents pass down their home then the threshold increases to a million. If you're due to inherit a million then you're generally classed as 'rich'. Only 18% of households in the UK have assets of £1m+.

But don't let facts get in the way of a good rant eh ;)
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My parents didn’t have a pot to pee in so I can’t say I have experience with that scenario! ;)

I’d consider myself middle class and as I don’t have kids, my modest estate would end up getting stung for tax as it would go to siblings. The best plan in the absence of offshore banking facilities seems to be to die with nothing. :)

In all seriousness the thresholds are well overdue an increase given inflation and the change in property values.
 
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koolpc said:
Buy gold and give that to family. No receipts. Nothing. If tax people ask, it was all gambled away or given to charity anonymously!

No way the government should get any percentage of inheritance money or money gifted.
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Inheritance being taxed over a certain amount makes sense... but the amount should be quite high.

Income tax is the worst one. The more I think about it the angrier it makes me. It should be completely scrapped down to zero.
 
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