Giving to a family member

[lolar]

I have a relative who has been diagnosed with cancer and will require traetment which will cost in the region of £50k. A group of relatives have agreed to pay for this treatment and also to provide for their family for a period of time.
What is the most tax efficient way of giving money to insure that there will be no charge to tax for the relative and family? Also what is the most tax efficient method of giving.

I would be grateful for any response

[adelante]

Simple as there is NO tax on gifts

[Tax is brill]

Depending on how many relatives there are and how many gifts they have given away previously, it might be that the gifts can be made with no inheritance tax implications. Each relative will have a £3,000 annual exemption which can be rolled forward for a year ie if no gifts have been made this tax year or last tax year by a particular relative, then they would be able to gift £6,000 with no inheritance tax implications. If there were nine relatives in this position, then you'd have your £50,000.

There would be no lifetime IHT payable on any cash gift but depending on the circumstances, tax may be due on any gifts if the donee dies within 7 years of making the gift.

Regards

taxisbrill@yahoo.co.uk

[Taxesclear.co.uk]

Have you considered a private charitable trust for this purpose.

Apart from the tax savings on gift aid that may be available you will also have a legal framework to protect the and control the money

dennis@taxesclear.co.uk

[Peter D]

Tax is brill has made a slight mistake in that he says 'tax may be due on any gifts if the donee dies within 7 years of making the gift.' The donee is the reciprient and the he meant Donor the provider. The value of a gift in excess of the allowance remains with the donors estate for the purposes of IHT calculation for 7 years but any tax potentially due attracts Taper Relief at 20% per year after 3 completed years.
However is the OP suggesting that the treatment is not available on the NHS thus the requirement for private treatment. I would go along with Taxesclear on this one or if you just want it dealt with then gift 6K each now i.e. last years and this years allowance, and another 3K after April the 6th 2007. so potentially 9K each and no IHT implications at all. But remember those gifts are given after TAx where as 'Private Charity Trust' can apply to recobver the tax on the gifts given thus boosting the funds. Find a well versed solicitor or ask for advice form the Private Hospital as many are used to these trusts and have a local legal contact. Regards Peter

[lolar]

Thanks everyone for your advice. I will discuss the options with the other family members.