Gifts - Parents to Children

Gifts - Parents to Children

Author
Discussion

uuf361

Original Poster:

3,154 posts

222 months

Friday 23rd February 2018
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This is probably a very daft question, but want to check.

I know you can give gifts of £3,000 per annum, but can each parent give a gift of £3,000 to each child, i.e. £6,000 per annum ?

HMRC is silent which means I assume they can as they have separate estates in effect but just want to ensure.....

anonymous-user

54 months

Friday 23rd February 2018
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uuf361 said:
This is probably a very daft question, but want to check.

I know you can give gifts of £3,000 per annum, but can each parent give a gift of £3,000 to each child, i.e. £6,000 per annum ?

HMRC is silent which means I assume they can as they have separate estates in effect but just want to ensure.....
Each parent can gift £3k. So 1 kid could get £6k or 2 kids £3k each or 3 kids £2k each etc. or however you want to split it.

Dr Mike Oxgreen

4,114 posts

165 months

Friday 23rd February 2018
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Indeed. All the IHT allowances and exemptions are on an individual basis. (Except when one spouse dies and transfers any unused IHT allowance to the surviving spouse.)

uuf361

Original Poster:

3,154 posts

222 months

Friday 23rd February 2018
quotequote all
That's what I thought but always a good idea to check.

Thanks for the input thumbup

anonymous-user

54 months

Friday 23rd February 2018
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You probably know but, just in case, the IHT on gifts tapers off and reaches zero after seven years if you are still alive and, in any case, IHT on the gifts applies only if your estate is greater than 325k. Also, if the gifts are made from your income, vs capital, and do not impair your own cash flow they don’t count for IHT anyway.

uuf361

Original Poster:

3,154 posts

222 months

Friday 23rd February 2018
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Yep, knew those bits, thanks smile

sas62

5,649 posts

78 months

Friday 23rd February 2018
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For one year only you can double the 3k to 6k (ie carry forward the allowance from the last year )

uuf361

Original Poster:

3,154 posts

222 months

Friday 23rd February 2018
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Yep, that’s being done this year to use up the 16/17 allowance too

TFP

202 posts

215 months

Saturday 24th February 2018
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Hang On said:
You probably know but, just in case, the IHT on gifts tapers off and reaches zero after seven years if you are still alive and, in any case, IHT on the gifts applies only if your estate is greater than 325k. Also, if the gifts are made from your income, vs capital, and do not impair your own cash flow they don’t count for IHT anyway.
Some good points here.

I would add that Taper Relief only applies where the cumulative gifts in the preceding 7 years exceeds the Nil Rate Band.

Put simply, you need to first give away £325,000 before Taper Relief applies to gifts in excess of this.

HTH

LeadFarmer

7,411 posts

131 months

Saturday 24th February 2018
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Does the £3k gift limit still apply even if the parents total estate is under the inheritance tax threshold?

So if a parent only has £10k to their name and gives £5k to their child, does the £3k rule still apply?

Jockman

17,917 posts

160 months

Saturday 24th February 2018
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no

sjj84

2,390 posts

219 months

Sunday 25th February 2018
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You can also give larger gifts for special occassions such as weddings. Can't remember the figure off hand, possibly 5k.

uuf361

Original Poster:

3,154 posts

222 months

Sunday 25th February 2018
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sjj84 said:
You can also give larger gifts for special occassions such as weddings. Can't remember the figure off hand, possibly 5k.
Yep, £5k for a child, £2.5k for a grandchild

Eric Mc

121,958 posts

265 months

Sunday 25th February 2018
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If you don't plan on dying anytime soon - you can give as much as you like.

uuf361

Original Poster:

3,154 posts

222 months

Sunday 25th February 2018
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Eric Mc said:
If you don't plan on dying anytime soon - you can give as much as you like.
Very true biggrin

williaa68

1,528 posts

166 months

Sunday 25th February 2018
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You may also find that if you are lucky enough to have parents who want to gift more you can insure against the potential CGT liability fairly cheaply, if they aren’t too old / infirm. Play around with the quotes on cavendish online or call them (I have no affiliation but they are very cheap)