Q about money gifts

[dweezle]

Quick question. My lovely Mum and Dad want to give me and my sister some money. How much can they give without tax ofice getting interested???

Up to £3000 to one individual in a year or £5000 if it' s a wedding gift

There are only implications if your parents were to die within the next 7 years, when the transfers would be considered for inheritance tax purposes.

We looked into this when my dad gave us some money for a house - we were advised that you can give/receive unlimited amounts but if it is over £3000 and your parents were to die within 7 years of the gift you have to declare it as part of their estate and pay inheritance tax.

[disclaimer - I know nothing about tax - only repeating what we were told!]

thanks all - I would get married and have M&D give me £5K as a wedding gift - but then I'd be committing bigamy so perhaps not a good idea!

If you are particularly concerned that one of your parents may die within the next 7 years, and that their (sole) estate (less anything given to the surviving spouse) together with this gift would definitely exceed the IHT tax limit, then do bear in mind that if they didn't use up their £3k tax allowance last year, they carry that forward.

In the unfortunate event that the gift does become liable to tax then only a proportion will be taxable, decreasing as the 7 year limit approaches.