Tax liability on gifts to family

[derekpeters]

My father now lives in a care home as a self funder, I have joint power of attorney with my sister to manage his finances. He has income from pension and benefits of £1900 per month after taxes, which is not quite enough to cover all his care fees and other expenses, so his capital of some £230,000 after the sale of his house is dwindling by about £1000 each month. He pays £150 each month into an "executor" account in the names of my sister and me as joint executors of his estate to cover funeral costs, and would now like to make a similar payment to my children, his grand children, to help them with the child care costs they are now facing. Are any of these payments subject to any kind of tax? Does IHT apply tomy father as the donor? Do I need to show the £150 monthly on my annual tax return? Would my daughters need to declare any cash given to them as regular contributions to their living expenses?

[pawncob]

If his capital is £230k it's well below the iHT threshold, so whatever he/you do has no IHT/Income Tax consequences and you don't need to declare anything.

[derekpeters]

Thank you, that's what I thought but it's good to have a definitive answer to a specific question; faq pages etc are so often so vague and generalised.