Gifting my son £5k

From the Money Advice website 'What and how much you wish to give your children or other members of your family is completely up to you.

But to ensure that it’s tax-free, it’s important to plan when to make that gift.

Simply put, so long as you live more than seven years from when you make this gift, your children or family won’t have to pay Inheritance Tax (IHT) on your gift when you die.'

You can give away as much as you want. There's only a tax implication if you die within 7 years.

If your son is married you could give each person £3,000. Keeps it simple in case you need to give him/them a top up.

We gave our daughters £15k each as they could make good use of it now. We did not take any steps regarding tax and neither did they.

kitty What is this verb to 'gift'.
It’s HMRC language for the verb ‘to give’

What is this verb to 'gift'.

If you should need care and cannot afford it without a state contribution, this could be seen as deprivation of assets. There is no time limit on that.

You can gift 5k towards a childs wedding without tax implications.

Phew, thanks MOMB.

I did this last year, for 6 grandchildren, and held my breath
?

I think you are right Auntieflo and you can give 6K, 3K for the present tax year and 3 k for the previous one.As long
as you live for 7 years Ladytina none of this matters.

I think you can buy gifts oldgoat. Just going to suggest that to my mum??
No one went through my dad’s bank accounts but if the revenue want to then they can. I think the council can too if they suspect you gave your property, for instance, to your children to avoid care home costs.

I'm very confused about this. Is it only cash handouts that are covered by this £3000 annual limit?

If you, for example, were to spend in excess of that amount paying for a grandchild's school skiing trip, or buying them an expensive musical instrument or sports equipment, would that spending also be taxed?

When you die, does somebody go through your bank accounts looking to see where your money has gone?

I thought that if you hadn't gifted any money, in the previous year, that you would then have £6000.00 to gift this year.

Perhaps I am wrong, but someone on here will know.

Kaggi, thought about what you have written. I think I’ve got it now.
Do you mean split the £5000? If he wants to buy a house now he probably can’t wait. Even if the OP dies, and I hope that’s not on the cards the tax won’t be much.

You can gift up to £3.000 per tax year without paying tax. It would help you if you do it in 2 years if he can wait for it.

You can give away a total of £3,000 each tax year to people other than exempt beneficiaries without paying tax.

Tax implications only if you die in the next 7 years and your estate is over the inheritance tax barrier. It is a sliding scale from year one to 7 . If you are not over the tax threshold if is nobody's business and no tax to be paid.