Discussion
Eric Mc said:
Not breaking any law.
Indeed, you would not be breaking any law if you gave it away for nothing. If you want to give somebody something of such a value, that is entirely your perogative.
But don't die within seven years.
^^^^THIS.Indeed, you would not be breaking any law if you gave it away for nothing. If you want to give somebody something of such a value, that is entirely your perogative.
But don't die within seven years.
It's the biggest urban myth going, that you can't give someone a gift or they'll have to pay tax on it. You can give anybody as much as you choose, but if you die within 7 yrs there will be tax to pay.
The above analysis isn't true if the parties are "connected" for tax purposes in which case open market value is used for the sale consideration.
A connected person could be, for example:
your husband, wife or civil partner
your brothers, sisters, parents, grandparents, children, grandchildren and their husbands, wives or civil partners
the brothers, sisters, parents, grandparents, children, grandchildren of your husband, wife or civil partner - and their husbands, wives or civil partners
certain trustees
a company you control
David
A connected person could be, for example:
your husband, wife or civil partner
your brothers, sisters, parents, grandparents, children, grandchildren and their husbands, wives or civil partners
the brothers, sisters, parents, grandparents, children, grandchildren of your husband, wife or civil partner - and their husbands, wives or civil partners
certain trustees
a company you control
David
Eric Mc said:
He would have made a whopping CGT loss - which would be of no value to him whatsoever.
The buyer will have purchased something for £1. When the buyer sells it later for (say) £150,000, he has a whopping CGT bill.
I used the term giftee wrongly - I meant to suggest the buyer might incur a large liability (which you kindly confirmed).The buyer will have purchased something for £1. When the buyer sells it later for (say) £150,000, he has a whopping CGT bill.
TwigtheWonderkid said:
^^^^THIS.
It's the biggest urban myth going, that you can't give someone a gift or they'll have to pay tax on it. You can give anybody as much as you choose, but if you die within 7 yrs there will be tax to pay.
Although not in this example as the £100k gift is under the nil band so no tax due (although the rest of the estate may have more tax to pay as a result) - something that happens when people give big chunks to one kid "early" and assume the other kids will get their share on their death......but the gift wipes out the Nil Band and screws the other kids.It's the biggest urban myth going, that you can't give someone a gift or they'll have to pay tax on it. You can give anybody as much as you choose, but if you die within 7 yrs there will be tax to pay.
Just to bump this one and hijack slightly...a not unrelated matter. A bunch of parents (read 100's) have clubbed together and collected money for a retirement gift for their kids' headmaster. Great debate ensued about what the gift should be but in the end it'll likley be cash for spending on travel. We're talking £000's here. Is the beneficiary likely to end up with a tax liability as it's cash? if so, what's the best way to avoid any such liability?
I'd welcome any advice.
I'd welcome any advice.
caiss4 said:
Just to bump this one and hijack slightly...a not unrelated matter. A bunch of parents (read 100's) have clubbed together and collected money for a retirement gift for their kids' headmaster. Great debate ensued about what the gift should be but in the end it'll likley be cash for spending on travel. We're talking £000's here. Is the beneficiary likely to end up with a tax liability as it's cash? if so, what's the best way to avoid any such liability?
I'd welcome any advice.
If its a genuine gift that is in no way contracted via his employment, he will have no liability to any taxes or NIC.I'd welcome any advice.
David
http://www.bullionbypost.co.uk/gold-coins/britanni...
gold britania coin has is legal tender and has face vaulue of £100 even though its worth over £1000 so may be a loophole there.
gold britania coin has is legal tender and has face vaulue of £100 even though its worth over £1000 so may be a loophole there.
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