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Where Taxpayers and Advisers Meet

IHT Gift - Quick query

anjo56
Posts: 20
Joined: Wed Nov 29, 2017 8:27 pm

IHT Gift - Quick query

Postby anjo56 » Fri Jul 26, 2019 11:56 am

I am gifting some money to my son for a property purchase. Some of the fees are payable by credit card only and he doesn't have one. I have made a couple of payments using my card on his behalf. Are these eligible to be counted as a gift as I am not asking for repayment? Thank you.

Lee Young
Posts: 2668
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Re: IHT Gift - Quick query

Postby Lee Young » Fri Jul 26, 2019 5:10 pm

Yes they are, though depending on the amounts involved they may be immediately exempt under the annual exemptions.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


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

anjo56
Posts: 20
Joined: Wed Nov 29, 2017 8:27 pm

Re: IHT Gift - Quick query

Postby anjo56 » Fri Jul 26, 2019 6:52 pm

Thank you Lee. Total about £900 for mortgage arrangement fee and property survey. When you mention annual exemptions, are you referring to the £3000 gift provision? Am just starting out on this journey.

Lee Young
Posts: 2668
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Re: IHT Gift - Quick query

Postby Lee Young » Mon Jul 29, 2019 8:55 am

Yes I am. We can all give away £3000 per tax year and those gifts are immediately exempt from inheritance tax.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


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

anjo56
Posts: 20
Joined: Wed Nov 29, 2017 8:27 pm

Re: IHT Gift - Quick query

Postby anjo56 » Thu Aug 01, 2019 8:02 pm

Many thanks. Much appreciated.

sandy2000
Posts: 38
Joined: Wed Aug 06, 2008 3:33 pm

Re: IHT Gift - Quick query

Postby sandy2000 » Wed Aug 14, 2019 8:05 pm

Yes I am. We can all give away £3000 per tax year and those gifts are immediately exempt from inheritance tax.
If the gift is more than 3000 -- say 7000 as one transfer, will only the additional 4000 be counted as not potentially taxable or the the entire gift of 7000 could be included for the inheritance tax?

sandy2000
Posts: 38
Joined: Wed Aug 06, 2008 3:33 pm

Re: IHT Gift - Quick query

Postby sandy2000 » Wed Aug 14, 2019 8:09 pm

If the gift is more than 3000 -- say 7000 as one transfer, will only the additional 4000 be counted as potentially taxable or the the entire gift of 7000 could be included for the inheritance tax?

AGoodman
Posts: 886
Joined: Fri May 16, 2014 3:47 pm

Re: IHT Gift - Quick query

Postby AGoodman » Thu Aug 15, 2019 10:28 am

Only the excess over £3,000. nb. the £3,000 exemption is per year, not per gift.

AnthonyR
Posts: 303
Joined: Wed Feb 08, 2017 2:33 pm

Re: IHT Gift - Quick query

Postby AnthonyR » Tue Aug 20, 2019 10:15 am

Plus bear in mind that the unused allowance from previous years can be carried forward, so if it wasn't used last year you have £6,000 of allowances meaning that the potentially exempt gift is only £1,000.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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