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 taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4985
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I have £129k in total after selling my home. I now live in

Customer Question

I have £129k in total after selling my home. I now live in my daughters house. I am 78.
I want to gift each of my three daughters £10,000 .... Can I do this?
It looks like there are no inheritance tax issues as my estate is far below £325,000. Are there any risks or prohibitions I need to consider?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Gifts of this nature are regarded as PETs (potentially exempt transfers) for inheritance tax purposes and the seven year rule applies to them. If you survive for 7 sevens after making the gift then the gifted amount is outside the scope of IHT. You can gift your daughters ... they would be delighted.

Furthermore, you have stated that your estate is far below the threshold of £325,000 for inheritance tax purposes. If the estate remains below this figure even after adding the gifts back then there is no tax to worry about.

More information on gifts and IHT can be found here

http://www.which.co.uk/money/tax/guides/inheritance-tax-explained/inheritance-tax-planning-and-tax-free-gifts/

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.
Are there are any other tax risks apart from inheritance tax?
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

There is no other tax you need to worry about. Recipient of a gift receives the money free of taxes and there is no tax on gifts in the UK.

I hope this is helpful.
Expert:  taxadvisor.uk replied 2 years ago.

Hello

I notice you have viewed my response to your question about tax implications on gift to your daughters (JACUSTOMER-4w65xmi4- Last Viewed on 5/29/2015 at 3:06 PM).

I am just checking to see if you have any issues relating to your question that I may not have addressed.


Please let me know if I can be of further assistance.