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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

We are elderly and wish to give our 5 adult children tax free

Customer Question

We are elderly and wish to give our 5 adult children tax free monies every year. How much are we allowed to give them? Could we give it to them in bonds or shares that we buy but in their names?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.
Let me take a look at this and I'll get back to you.
Expert:  TonyTax replied 1 year ago.
Hi. You can each give £250 to as many individuals as you like and up to £3,000 in total to one or more individuals Inheritance Tax free but not in combination with a £250 gift to the same person. If you haven't used your £3,000 limit for the previous year, you can use it in the current year so that's a maximum of £6,000. Take a look here for more information on gifts and Inheritance Tax:http://www.which.co.uk/money/tax/guides/inheritance-tax-explained/inheritance-tax-planning-and-tax-free-gifts/As you will see, larger gifts can be made in recognition of special occasions.It would be simpler if you have your children cash. If you buy shares or bonds and give those away, they may be classed as disposals for Capital Gains Tax purposes and, though there are unlikely to be significant gains, cash is so much easier. I hope this helps but let me know if you have any further questions.