This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Money Gift to a friend

sregulator
Posts:1
Joined:Mon Nov 06, 2017 4:29 pm
Money Gift to a friend

Postby sregulator » Mon Nov 06, 2017 4:37 pm

Hi,

I am considering helping my girlfriend to get on the property ladder by giving her around £400,000 as a gift. She can then use the money to purchase a home if she finds somewhere. It will be in her name and for her to keep. We are both EU-UK residents living in the UK. Would this gift be subjected to Inheritance tax? I am in my early 40s with no ill health (ie not planning to die in the next 7 years).

Many thanks.

Lee Young
Posts:2707
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: Money Gift to a friend

Postby Lee Young » Wed Nov 08, 2017 6:21 pm

There could be tax on your girlfriend if you were to die within 7 years. The first £325,000 is covered by the nil rate band, the balance is taxable if you don't survive seven years, though if you survive more than three years then taper relief will apply to reduce the tax liability.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”