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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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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
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