Is there a limit to how much an individual can give in gifts?

[HaitchJay]

My Grandad has just sold his house & is self funding in a care home. He is hardly dipping into his savings to pay for this and even to get to the limit the council sets to assist , he will have to live for another 20 years (110)on current rates.

So he wants to give some money to my mum/me/ggdc.
Is there limits on this? His estate won't reach inheritance tax level which is all I found online.

this is about gifts and inheritance tax, which you've probably already found.

I'm not an expert, but I think it's only a problem if he dies within 7 years of the gift because it's still part of his estate and then only because it's still considered for inheritance purposes so if he's not going to hit the limit then presumably that's ok? What you can't do is "give" your house to your children and then continue to live in it rent free to avoid paying IHT.

From a quick google, it seems that you don't have to pay income tax on cash gifts so you're ok there too.

Thanks, we probably will be ok but he wants to buy my Mum a conservatory so that's quite a big gift. I

What they look out for is disposal of assets so that you go under the threshold and the state has to fork out. This isn't the case here. If he does die within 7yrs the estate, not your mum, will have to pay the tax due - which of course will affect all heirs.

Is that inheritance tax or a different one?

Lifetime gifts - up to £3,000 per year in total with no IHT implication. If more than £3,000, then if he does within 7 years, then the gifts are included in his estate for IHT, but are still perfectly valid gifts.

If he is under £325,000 (or £650,000 if he inherited the entire estate from a late spouse), then this shouldn't be a problem.

Care fees - varies depending in local authority, bur generally there will be a problem if he is self funding and gives money away which means he cannot pay. They will probably claw it back.

If he gives property (ie a house) watch out for Capital Gains Tax.

see also www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

He's got about £80k before he gets any help from LA and he is paying 90% of his care fees from pension so even giving some away he won't reach needing their help for a long time.

Thanks

I recall hearing on R4 MoneyBox Live recently that there is no limit on the gifts that can be given to grandchildren? Perhaps I picked it up wrong?

my uncle was able to gift me £3000 bout 3 yrs ago and then last year gifted my sister £2000 for her wedding without having to pay tax he was told £3000 was the most he could gift without paying tax on it hope this helps