my parents have decided they want to distribute their estate now rather than their 6 children having to wait for them to die beore receiving anything. They do nothave anywhere near the amount to be inthe INheritance tax bracket but could give each of us £10,000 and still have sufficient funds to draw on for themselves. My Dad has a very good civil servants pension.
What is the tax situation if they do this.
giving money to children
4 posts • Page 1 of 1
by CWatters on Sun May 14, 2006 4:08 am
Do they have grand children? It might be worth skipping a generation... This is the reason...
If parents give young children money then any income over £100 from that gift is treated as belonging to the parents for income tax purposes.
If the grand parents give the young children the same money then it's NOT treated as the parents income - it is treated as the childs...and the child is probably a non-tax payer.
Overall the family saves a bit of income tax.
If parents give young children money then any income over £100 from that gift is treated as belonging to the parents for income tax purposes.
If the grand parents give the young children the same money then it's NOT treated as the parents income - it is treated as the childs...and the child is probably a non-tax payer.
Overall the family saves a bit of income tax.
- CWatters
- Posts: 33
- Joined: Wed Aug 06, 2008 3:37 pm
4 posts • Page 1 of 1
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