Question
My husband is about to get some money that he wants to give to my two sons 24yrs and 29 yrs old
What is his position on this. Do they pay Tax, does he and is there a limit to amount that he gives them?Answer
Your husband doesn't have to pay tax on the money he gifts and neither will your sons on receiving the money. That's because HMRC assumes the money your husband gifts has already been taxed in some way or another. There's no limit pon how much he can gift.
Of course, your sons will have to pay tax as usual if they subsequently earn income from the money, for example tax on interest if the money is held in a savings account.
Provided your husband lives for at least seven years after making the gift then the money gifted will fall outside of his estate for inheritance tax purposes too.
My husband is about to get some money that he wants to give to my two sons 24yrs and 29 yrs old
What is his position on this. Do they pay Tax, does he and is there a limit to amount that he gives them?Answer
Your husband doesn't have to pay tax on the money he gifts and neither will your sons on receiving the money. That's because HMRC assumes the money your husband gifts has already been taxed in some way or another. There's no limit pon how much he can gift.
Of course, your sons will have to pay tax as usual if they subsequently earn income from the money, for example tax on interest if the money is held in a savings account.
Provided your husband lives for at least seven years after making the gift then the money gifted will fall outside of his estate for inheritance tax purposes too.
Read this Q and A at http://www.candidmoney.com/questions/question607.aspx
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