Parents sponsoring a daughter through a PHD

[rachel51]

Our daughter is keen to do a PHD which unfortunately has not been funded by anyone. We would like to sponsor her but would like some information on the best way to so and the best way to get benefits for her while doing so. For example can we Gift Aid the cash to her so she can claim back the income tax paid, or is there a better way. We are both retired although I do have a part time job.
Many thanks for any help

[mullet]

You cannot gift aid money to her to get the tax back. If you are able to make gifts out of income and not have a dimished standard of living as a result, then that won't be considered for IHT. Otherwise, you can gift £3,000 per tax year (£6,000 if you gifted nothing the previous tax year) with no IHT implications. Give what you like and then survive for 7 years and no IHT issues. But if you won't be within IHT anyway then forget all of that and gift freely.

Not sure what you mean about "the best way to get benefits for her".