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Where Taxpayers and Advisers Meet

Additive amounts?

Joined:Fri Aug 21, 2015 1:35 pm
Additive amounts?

Postby Flibbet » Tue Dec 21, 2021 9:46 pm

About 18 months ago, I made quite a large transfer to my daughter to help her to buy a house (290k). This amount is subject to the 7-year IHT rule.
Under normal circumstances, I believe I am allowed to pay £3,000 per year to a child without declaring it for tax, but I would like to ask, if I was to give her £3000 for Christmas, would that be added onto the amount I have already given her, and go into the fund that is currently 18 months into its 7-year IHT period, or would it be considered a one-off Christmas present, free of tax?

Thanks for your expertise.

Joined:Fri May 16, 2014 3:47 pm

Re: Additive amounts?

Postby AGoodman » Wed Dec 22, 2021 4:46 pm

The £3,000 limit applies to any and all gifts you make during the tax year. Gifts up to this amount are entirely exempt so would not be PETs like your earlier large gift.

There is (another) separate exemption for small gifts of up to £250 per recipient per year. It isn't limited to Christmas.

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