How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13809
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I would like to gift my son an amount of around 130k will he

Resolved Question:

I would like to gift my son an amount of around 130k will he or myself have any tax problems if this is done I am 66
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question and asking for me.
Neither you or he will have any tax position to consider,a s gifts are tax free, but you may have to consider an Inheritance tax position IF
1) Your estate (including this gift) exceeds £325,000 and
2) You do not survive more than 7 years from the date of the gift.
I would suggest that you make sure that you draw up a document that states the gift details (who, when and how much) and place this with your will - so it can either be considered (should you not survive more than 7 years) or disregarded as it becomes more than 7 years OR your total estate (including this gift) is less than £325,000
It may also be - IF you are a widow, that there is unused exemption band from a late spousals estate.
Let me know if you have any follow up questions
Thanks
Sam
Customer: replied 2 years ago.
Thank you for reply I should have mentioned that I am married and we have joint assets so do I presume correctly that capital gains only would be charged if we botched died before the seven year rule
Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
If either of your died before 7 years lapsed it would then be assumed that your half share if the gift should be be considered. and this would only have a bearing if your share of the estate was more than £325,000
Usually the first spouse leaves most of their estate to the surviving spouse (which does not form part of the £325,000 exemption)
Let me know if you require any further assistance, but it would be appreciated if you could rate the level of service I have provided (or click accept) so Just Answer credit me for my time.
Thanks
Sam
Thanks
Sam
Customer: replied 2 years ago.
Thank you for your reply just one more question are tax implications different if I purchased a property for the said amount for my son instead of giving him money
Expert:  Sam replied 2 years ago.
Hi
Thanks for your further question
It will be different as you will have ownership of the property for tax and Inheritance tax - and the sale (or any transfer) will trigger capital gains on you, as well as you then always having that value as considered as yours (so no 7 year exemption from Inheritance tax if it remains in you and your spouses name)
If you plan to transfer the property into your sons name, then a capital gain will only arise if there has been an increase in value from the purchase date and the date of transfer, and this exceeds £11,100 (or £22,200 if the property is in your and your spouses name)
But then the transfer will see the 7 year exemption apply for Inheritance tax purposes
Thanks
Sam
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13809
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.co.uk/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.co.uk/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.co.uk/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.co.uk/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions