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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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One of my daughters (a self employed musician) has lung cancer

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One of my daughters (a self employed musician) has lung cancer and less able to work. she has 4 children and for the past 12 months, I have made her an allowance of £500 per month to help her (6 months out of 2014/15 allowance of £3000 and 6 months out of this year'). As I understand it, this is the maximum I can do. Is there any way in which I could continue the allowance beyond the £3000 ?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.
I'm sorry to read of your daughter's illness.
I assume you are referring to gifts which are exempt from Inheritance Tax when you mention the figure of £3,000. You can gift your daughter as much money as you like to help her as she won't have to pay tax on the money.
If you make a gift which is not exempt from Inheritance Tax, all that means is that should you die within seven years of making a non-exempt gift (a potentially exempt transfer) its value will remain in your estate for Inheritance Tax purposes. Should you not die within seven years, the value of the gift will no longer be included in your estate for IHT purposes
If you makes gifts in excess of the £3,000 annual allowance bearing in mind that you can use the unused allowance from the previous tax year, then the excess will be classed as a potentially exempt transfer as described above.
Take a look at the notes below for information on gifts which are exempt from Inheritance Tax. These can include gifts to a relative who depends on you financially.
https://www.moneyadviceservice.org.uk/en/articles/gifts-and-transfers-exempt-from-inheritance-tax
I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
Many thanks
Expert:  TonyTax replied 1 year ago.
Thanks for accepting my answer.

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