Cube mk2 and WIR

[Sheilaz]

Sorry about this, but Omleteers seem to know everything & I can't find an answer to this until trying to 'phone Inland.Rev., at a very busy time for them, so will have to spend ages on the phone on my next day off which could be some while hence....Does anyone actually know;

 

In a tax year a person may give as a gift £3000 (more for a wedding gift etc, and some additional small gifts may be made). But, is this a total of £3000...therefore £600 each to 5 people...or as many lots of £3000 as you like?

I've read the I.Rev. wording about this and it's ambiguous. It really could mean either.

 

Of course, the limit is to stop people just giving away wealth so a family avoids tax on it, so I tend to think it must be the former. But, that seems a small amount for a total, and whilst it would be easy to stick to a lump sum limit, eg £1000 each for 3 gifts, how do people count lots of small amounts, and what counts as large or small?

 

The person who asked me this has been giving £3000 a year to each child, but only one per year.

 

Which is the correct interpretation, does anyone know? Thanks to anyone who can be bothered to read/reply!

[Cate in NZ]

Sorry Sheila, I haven't got a clue...but would be interested in the answer though .

[Sheilaz]

Well, good to say hello anyway...we can both be confused together & await the arrival of a knowledgeable person! Hello Kate!

[Gamebird]

As far as I am aware you can only give away £3000 in any one year to a total of anyone. In other words no matter how many recepients you might have £3000 is the limit.

 

I do hope somebody else will tell me otherwise because it does seem a small amount of money if you have several acceptable recipients.

 

However, the 7 year rule applies, i.e. you can give away as much money as you like and if you survive the recipient by 7 years then you are excempt of inheritenve tax.

 

I found http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/DG_10010612] *this* [/url] which might help clarify or complicate the issue!

[Sheilaz]

Thanks Gamebird, that was the link I'd seen, and that interpretation seems most likely, but I just don't think it sounds definite about it being the total sum, not the individual. Another sentence would clarify it, as the example doesn't help.

[freddie]

Gamebird is spot on, I'm afraid, and also, once the under 16's account has more money in it to get more than the tax allowance allowed in a yr, then it's liable to tax. Dear Gordon hasn't missed a trick.GRRR

[Sheilaz]

Thanks Freddie & Gamebird. So, an elderly parent (unless 7 yr rule applies) can only give £3000 total, even if it's £300 to 10 children, plus £250 each for birthdays, leaving nothing else to be given away to anyone else (other than the birthday limit).

 

Not much in large families is it?

[Gamebird]

£3000 is the maximum in any one year - full stop - no matter how many people you would like to give it to.

 

Unfortunately, it does seem that whichever way you turn Big Brother is there to tax you.

 

However, little small bits and pieces of money spent hear and there in numerous numbers are harder to detect.

[Tessa the Duchess]

 

However, little small bits and pieces of money spent hear and there in numerous numbers are harder to detect.

 

Almost impossible to detect I would have thought. If you give cash it would be easy to give away quite large amounts of money, which is fine if the recipient wants to actually buy something, but it wouldn't work if it is given to be added to a saving account. Although in today's financial climate I think we have agreed an old sock under the bed is probably the safest option.

 

Tessa

[Sheilaz]

Well, Omleteers do it again!

Thank you so much everyone, I can now pass on the info. with confidence, without wasting ages on the 'phone tomorrow.

 

Omleteers know everything!