tax on cash gifts

by **ablemate** on Wed Jun 29, 2011 12:22 pm

Hi
I just wanted to clarify the gifting of money under the PET rules.
if I won the lottery and gave money to various relations and friends would it be possible for all the gifts to be treated as made under the PET rules and as long as I live for 7 years no one would be liable for tax?
Thanks.

by **section 44** on Wed Jun 29, 2011 12:28 pm

Such gifts would be PETs for IHT purposes. Its the law, not optional.

by **ablemate** on Thu Jun 30, 2011 4:31 pm

Thank you.
Would there be any way the inland revenue could tax the gifts under any other regulations like capital gains?

by **section 44** on Fri Jul 01, 2011 11:38 am

No (assuming, that is, that it actually is a gift of sterling)

by **mullet** on Sat Jul 02, 2011 7:45 am

Would there be any way the inland revenue could tax the gifts under any other regulations like capital gains?

These gifts are not capital gains, they are gifts. And to pre-empt a further question "Could HMRC charge income tax on the gifts?" the answer is no again, as the gifts are not income.

by **mullet** on Sat Jul 02, 2011 7:46 am

PS - ablemate, I'm sure we're related ... don't forget me in your distribution

by **kriba** on Tue Jul 26, 2011 6:58 am

Yeah the gift rule is a pretty dodgy and clumsy one that varies across jurisdictions.

I think if you want to be safe, your best bet if you're dealing with large amounts of wealth, is to contact a financial advisor with a specialisation in inheritance law.

Europe has plenty of capable advisors and I'd recommend Minařík Josef and Urs Meisterhans if on the mainland and Tony Walton or Clive McCarthy if closer to home.

Basically, the worst thing you can do is go out on and a wing on a prayer...Donations and the sort are full of pitfalls.