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The boy is 16, the girl is 11 years old.
Thanks for your helpful advice. Re. your comments:
1) 'As your son is UK domiciled.....' No, the family have emigrated to Australia. (Sorry not to have made this clearer.) Can I still just send these 'gifting' cheques without my son incurring tax penalties ? It seems too simplistic!
Am very naive about these matters. Grateful for your help. Lorna
1 Domicile of birth is very difficult to change. Your son is resident in Australia and not tax resident in the UK. Domicile and tax residency are two very different things. Take a look here for more information.IHT exempt gifts are meant to be simple. Your son will not be liable to tax on them in the UK. Many parents make gifts to their children and many are used to put down deposits on property. If they were taxable, you would have seen protests on the streets and the Treasury would be bombarded with vitriolic letters from irate parents and adult children.