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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Is there an annual cap on cash gifts from parent to child

Resolved Question:

Is there an annual cap on cash gifts from parent to child which do not impose a tax penalty on either parent or child, and can such a gift be back-dated to a previous tax year?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.


There is no limit as such but there are limits to how much can be gifted free of a potential Inheritance Tax charge. Take a look here and here for information on exempt gifts. If the £3,000 gift exemption is not fully used in one year, the unused balance can be used in the next tax year.

For those with large incomes, there is a gift out of income exemption. You can read about that here.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 1 year ago.

For the avoidance of doubt, the recipient of a gift does not pay income tax or capital gains tax on it.

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