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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10585
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I have seventy thousand pounds in all. I wish to gift my grand

Resolved Question:

I have seventy thousand pounds in all. I wish to gift my grand children fifty thousand pounds of this money and put the rest into an ISA.
Are these small amounts, fifty thousand divided between seven people, subject to any tax?
Submitted: 2 years ago.
Category: Law
Expert:  Aston Lawyer replied 2 years ago.
Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
There is no tax payable on the date of any proposed gfts to your grandchildren.
However, each gift will be a "potentially exempt transfer", meaning that provided you survive for 7 years from the date of the gift, none of the gifts (£50,000) will form part of your Estate for Inheritance tax purposes.
If you were to die within 7 years, then the gifts would become taxable, if your Estate was liable for Inheritance tax. There is a sliding scale of the amount taxable.
I have added the link to the HMRC website so you can see how this is worked out
http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/gifts.htm#4
If you were to survive for 7 years or your Estate is not large enough for Inheritance tax to become payable, then no tax is payable whatsoever!
I hope this assists and answers your question.
Kind Regards
Al
Thanks
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