View Full Version : How much money can you give away each year?


owdlad
17-03-2006, 20:24
Anybody out there know how much money you can give away each year without tax implications? I know about the 3000 but not about Birthday and Christmas presents or anything else.
Thanks in anticipation of help before the end of this tax year.

Serious answers please.

cgksheff
17-03-2006, 20:42
With regard to Inheritance Tax?

As many small gifts as you want so long as no one person recieves more than £250 per year.

Wedding gifts of up to
– £5,000 for each of your children (including adopted children and step-children) or the person that your child is marrying
– £2,500 to each grandchild, great grandchild or the person your grandchild or great grandchild is marrying
– £1,000 to anybody else
(To qualify, a wedding gift must be made on or shortly before the marriage, to one or both parties, and exemption only becomes fully effective when the marriage takes place.)


.. and then charities, Tony Blair, museums, housing associations, etc.

Twiglet
17-03-2006, 20:50
With regard to Inheritance Tax?

As many small gifts as you want so long as no one person recieves more than 250 per year.

Wedding gifts of up to
5,000 for each of your children (including adopted children and step-children) or the person that your child is marrying
2,500 to each grandchild, great grandchild or the person your grandchild or great grandchild is marrying
1,000 to anybody else
(To qualify, a wedding gift must be made on or shortly before the marriage, to one or both parties, and exemption only becomes fully effective when the marriage takes place.)


.. and then charities, Tony Blair, museums, housing associations, etc.

I think you can actually give away as much as you want. It only becomes liable for inheritance tax if you die within the next 7 years. (Nice thought for you there!).

cgksheff
17-03-2006, 21:00
.... but (forgetting Inheritance Tax for a moment) if Owdlad gifts, say, £20,000 to me, do I not have to pay any tax on it?
Is it not a form of taxable income?

Twiglet
17-03-2006, 21:14
.... but (forgetting Inheritance Tax for a moment) if Owdlad gifts, say, 20,000 to me, do I not have to pay any tax on it?
Is it not a form of taxable income?

I don't think so. I was thinking about this very carefully the other week because I was SO sure I was going to win Euromillions :D and wanted to know how much I could give to my family.

I don't think it is income, and it doesn't count as capital gains. I'm fairly certain it's only the inheritance tax, and then only if the person handing the money over dies within 7 years. Having just read the IR advice on inheritance tax I'm not so sure (if only I could remember back to when I did my FPC exams).

owdlad
18-03-2006, 12:25
Thanks for the advice folks.

fox20thc
18-03-2006, 12:26
Anybody out there know how much money you can give away each year without tax implications? I know about the 3000 but not about Birthday and Christmas presents or anything else.
Thanks in anticipation of help before the end of this tax year.

Serious answers please.

You could give me some.. ;) I am being serious!

Don_Kiddick
18-03-2006, 12:28
You could give me some.. ;) I am being serious!
Can you claim the tax back on it too?