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Where Taxpayers and Advisers Meet

Gift To Friend (Tax Liability)

Joined:Tue Jan 04, 2022 3:32 pm
Gift To Friend (Tax Liability)

Postby ZeroWorld » Mon Jan 10, 2022 1:51 pm

Quick question for the experts here.

If I gift my friend £1,000,000 tomorrow - will he have to pay tax on that gift, if I survive over 7 years?

I had assumed the max you can gift is £3,000 per year, but upon further reading - it seems I can gift a lot more, and if I survive 7 years, the recipient of the gift will pay no tax.

Thanks in advance for any thoughts.

Joined:Fri May 16, 2014 3:47 pm

Re: Gift To Friend (Tax Liability)

Postby AGoodman » Mon Jan 10, 2022 4:15 pm

No. The gift is a potentially exempt transfer - i.e. if you survive 7 years it is exempt from tax.

The £3,000 is just the (small) sum that is automatically exempt from day 1.

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