Limit On Gifting Money Before Tax

[Spydaman]

My Mother in Law wants to gift both of our children £10k each. It looks like there is a £3k limit before tax is paid i.e. £1.5k each. Who pays the tax the giver or the beneficiary? Is there a better way of doing this.

[PurpleMoonlight]

There is no tax to pay unless she dies within seven years, when some will be added back to her estate for IHT purposes.

[GT03ROB]

As long as your MIL lives for 7 years after the gift, you should be fine...no tax

[Spydaman]

That could be a problem as she's been in remission from lung cancer for the last five years. Hopefully she will last to a ripe old age but no gurantees.

[Eric Mc]

You can give as much as you like to anybody with no tax implications - as long as you don't die within 7 years of making the gift.

[turbobloke]

Eric Mc said:

You can give as much as you like to anybody with no tax implications - as long as you don't die within 7 years of making the gift.

It's definitely worth making a note in the duary

[megaphone]

And it depends IF there is any IHT to pay on your MIL's estate. Is her estate likely to be above the threshold? If not then there are no tax implications, she can give as much away as she likes without any tax worries for either party.

Edited by megaphone on Sunday 21st June 10:38

[Spydaman]

Perfect. Her estate is just about on the threshhold for inheretance tax. Thanks all for the answers.