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Where Taxpayers and Advisers Meet

Surplus income query

Posts: 19
Joined: Sun Jan 19, 2020 12:32 am

Surplus income query

Postby Bill31 » Sat Jun 27, 2020 12:31 am

Help needed regarding surplus income as never did this before.
Say I receive 2 pensions one from my late partner and soon the state pension, which will total £1240 per month. Can this be used to pay out of surplus income?

After say my monthly bill and expenses i have £500 left over every month, i want to gift £300 monthly to my son. Can i do this as a one of payment every year so 300x12 =£3600 in say october every year, or does it have to be a regular monthly payment?

Then can i also make him a £3000 gift on top of that from the 3k allowed exemption every year? And also pay other individuals £250 per year

Posts: 227
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire

Re: Surplus income query

Postby jerome.lane » Sat Jun 27, 2020 7:27 am

You can make regular monthly or annual payments out of surplus income on top of other gifts out of capital. It is recommended that you document each gift and I would suggest making a written declaration as some sort of letter of wishes with regards to your intention to make regular gifts out of income.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Posts: 19
Joined: Sun Jan 19, 2020 12:32 am

Re: Surplus income query

Postby Bill31 » Sat Jun 27, 2020 9:43 am

Ok thanks

Another question say if i was to pay a hmrc tax bill for someone like my son, but i paid it directly to hmrc from my bank account on his behalf. Would that been seen as a 7 year gift or not?? He would not be paying me back

Posts: 1046
Joined: Fri May 16, 2014 3:47 pm

Re: Surplus income query

Postby AGoodman » Mon Jun 29, 2020 5:23 pm

It's still a gift but it could still qualify as a gift out of surplus income.

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