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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 6459
Experience:  Solicitor
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My daughters grandad wishes to gift her a lump sum of £3k

Customer Question

My daughters grandad wishes to gift her a lump sum of £3k from grandma. Last year grandad paid her 5k (3k from grandad and 2k from grandma) and also now wants to pay a smaller regular monthly payment. Will there be any tax to pay by my daughter or grandad? Can grandad give any amount of money and will he or daughter be liable to tax?
Submitted: 1 year ago.
Category: Law
Expert:  Jamie-Law replied 1 year ago.

Hello my name is ***** ***** I will help you with this.

You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

Each person can do this. So grandad can do this too

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Can grandad give away any amount? And will that be added to his estate, which will be charged inheritances tax? If a larger amount given if grandad lives 7 years no tax to pay? If he dies within the 7 years, is inheritance tax payable on that amount?
Expert:  Jamie-Law replied 1 year ago.

No. He can only give away £3000 tax free also in money.

He can give anything else away, ie property etc and if he lives for 7 years then no tax is payable

Does that clarify?