how much 'gift' money before tax is payable

[oilandwater]

As the title really, how much money can you give as a gift to your offspring before tax is payable.
I'm thinking in terms of premium bonds. If I gave £x amount in premium bonds to an offspring how much am I allowed to give, who pays tax if any on it, the giver or the receiver?

[Deva Link]

You can give as much as you like. It's only potentially an issue if you die with 7 years.

[oilandwater]

Thank you, that was the reply I was hoping for.

[Deva Link]

This is the internet though - if the answer is important you should take proper advise.

As you mentioned premium bonds then it's not a *vast* amount of money, but you could cause someone all sorts of difficulties if you gave them say, £250K and then unexpectedly popped your clogs a few years later.

[oilandwater]

Deva Link said:

This is the internet though - if the answer is important you should take proper advise.

As you mentioned premium bonds then it's not a *vast* amount of money, but you could cause someone all sorts of difficulties if you gave them say, £250K and then unexpectedly popped your clogs a few years later.

£250k? Oh but if only!
No just a small amount, and I hope I can hang on for a few years, I don't want to kick the bucket just yet, but you never know, that light at the end of the tunnel could be an on coming train.
Thanks again.

[WorAl]

I was lead to believe that it was £300k before you paid tax on a "gift" of money....you could always lose a bet if you want to give away more

OT Oilandwater do you by any chance, work for Newcastle Council? or have something to do with them?

[Tiggsy]

WorAl said:

I was lead to believe that it was £300k before you paid tax on a "gift" of money....you could always lose a bet if you want to give away more

OT Oilandwater do you by any chance, work for Newcastle Council? or have something to do with them?

YOu can give what you like but when dead the nil rate band will be used to cover those gifts made in the last seven years. The NRB is £325k at the moment so, unless you give more than that it's not an issue (apart from reducing the NRB for whoever else is then supposed to benifit under the WIll)

[ShadownINja]

I thought you could give someone £3k without implications?

Ta huffing da: http://www.telegraph.co.uk/finance/personalfinance...

Edited by ShadownINja on Wednesday 2nd September 15:17

[oilandwater]

WorAl said:

I was lead to believe that it was £300k before you paid tax on a "gift" of money....you could always lose a bet if you want to give away more

OT Oilandwater do you by any chance, work for Newcastle Council? or have something to do with them?

No, nothing to do with them, sorry.

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Thank you all for the good advice though.

[ukshooter]

A lot depends on the age of your offspring and the amount that you are giving. There are allowances that exempt the gift from Inheritance tax, £3,000 pa (£6,000 if you didn't make a gift last year) etc. However, there is also an issue over income tax if the recipient is a minor. Grandparent giving is not an issue but a parent giving could end up being taxed on the interest earned as if the money was still their own.

[TooLateForAName]

I seem to remember something about the child's income potentially being taxable?

Was it that if they had more than £100 investment income then it is taxed as the parents? Something like that. I'm sure one of the financial pros can confirm.

All the seven year/£3k stuff is for IHT.