Paying daughters Uni fees
Discussion
sideways sid said:
PugwasHDJ80 said:
IT does mean that my effective tax rate for the five grand bonus I got this year was over 60% eek
How much would the bonus have been without the university education?
(actually had i gone to Uni one year earlier, but i'l try not to be completely bitter and twisted about it
) 21TonyK said:
Similar debate in our house at the moment. Except mines looking at 7 years 
Architecture course?If so, its not 7 years in uni. its 3 to 4 years uni (depending on if its a Hons course) to get your RIBA part 1 a year in work at a architectural firm. 1 or 2 year BA or MA to gain RIBA part 2 and a further year working in an architectural firm while preparing for the Part 3 exam.
lord summerisle said:
Architecture course?
If so, its not 7 years in uni. its 3 to 4 years uni (depending on if its a Hons course) to get your RIBA part 1 a year in work at a architectural firm. 1 or 2 year BA or MA to gain RIBA part 2 and a further year working in an architectural firm while preparing for the Part 3 exam.
I don't know about architecture but I had to pay half fees during my year in industry (QS).If so, its not 7 years in uni. its 3 to 4 years uni (depending on if its a Hons course) to get your RIBA part 1 a year in work at a architectural firm. 1 or 2 year BA or MA to gain RIBA part 2 and a further year working in an architectural firm while preparing for the Part 3 exam.
Another issue is the tax aspect - if you gift the £45k you'll have to formally declare it on whatever years self assessment return and she will have to complete a self assessment form to state the fact she has received this income but it is tax free (provided you live for 7 years from the date of the otherwise she will be paying tax on it)
Welshbeef said:
Another issue is the tax aspect - if you gift the £45k you'll have to formally declare it on whatever years self assessment return and she will have to complete a self assessment form to state the fact she has received this income but it is tax free (provided you live for 7 years from the date of the otherwise she will be paying tax on it)
??A gift is a gift, it's not income of the recipient and doesn't need to be declared on the recipient's tax return.
Don't forget there's a tax free gift allowance of £3,000 p.a. and, if used, only the excess above £3,000 p.a. could ever be subject to IHT if you fail to survive 7 years (and the tax reduces on a sliding scale for death after year 3).
If the fees are paid out of your income, as opposed to savings, they will be outside the scope of IHT in any event.
Ozzie Osmond said:
??
A gift is a gift, it's not income of the recipient and doesn't need to be declared on the recipient's tax return.
Don't forget there's a tax free gift allowance of £3,000 p.a. and, if used, only the excess above £3,000 p.a. could ever be subject to IHT if you fail to survive 7 years (and the tax reduces on a sliding scale for death after year 3).
If the fees are paid out of your income, as opposed to savings, they will be outside the scope of IHT in any event.
You have to declare it on the self assessment / she certainly will as its >£3k per year allowed to be given tax free. A gift is a gift, it's not income of the recipient and doesn't need to be declared on the recipient's tax return.
Don't forget there's a tax free gift allowance of £3,000 p.a. and, if used, only the excess above £3,000 p.a. could ever be subject to IHT if you fail to survive 7 years (and the tax reduces on a sliding scale for death after year 3).
If the fees are paid out of your income, as opposed to savings, they will be outside the scope of IHT in any event.
However you could give £3k per year as a lump sum and then drop in the £6k which would mean it's below the income tax threshold and also below National insurance threshold.
Far better to do it this way over one lump value - also you don't need to do it now it could be once she has finished
I made our daughter take out a student loan. It won't do her any harm at all to live in the REAL world.
And on the quiet I've matched the fees in an ISA for her.
If for some reason she really can't take the pressure of the debt any longer she'll have a nice surprise to learn that can pay it off, and might even have something left over.
Bt to be honest, I can't quite see what the fuss is about (other than the principle of paying for an education). My first mortgage cost me 12%. So compared to that student loan repayment terms are incredibly benign. I wish there was a car loan like that!
And on the quiet I've matched the fees in an ISA for her.
If for some reason she really can't take the pressure of the debt any longer she'll have a nice surprise to learn that can pay it off, and might even have something left over.
Bt to be honest, I can't quite see what the fuss is about (other than the principle of paying for an education). My first mortgage cost me 12%. So compared to that student loan repayment terms are incredibly benign. I wish there was a car loan like that!
Edited by corporalsparrow on Monday 28th September 14:39
ker ho b
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