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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I have inherited my mother's estate which will total circa

Resolved Question:

I have inherited my mother's estate which will total circa £100K. I wish to gift £20K to each of my children (over 18) - one living in UK and one living in Australia. Will these gifts attract any tax?
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for allowing me to assist you.
You may gift the amounts to your children. Any gifts you make to individuals will be exempt from Inheritance Tax as long as you live for 7 years after making the gift. These sorts of gifts are known as 'Potentially Exempt Transfers' (PETs).
If you die within 7 years and the total value of gifts you made is less than the Inheritance Tax threshold, then the value of the gifts is added to your estate and any tax due is paid out of the estate.
Regular receipts of money and gifts from relatives living overseas which exempt from Australian tax (for your child living in Australia). That child would not have to report if only a one time gift.
Your child in UK has no reporting or taxation either.
TaxRobin and other Tax Specialists are ready to help you
Expert:  TaxRobin replied 3 years ago.
JACUSTOMER-bbpdw49h- Last Viewed on 16/09/2014 at 16:19

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