NACRO

I want to make a substantial cash gift to a good friend who has helped me out through the good and bad times as a thank you. However I don't want my money to go to the Inland Revenue- is it possible to make a substantial gift to someone (we are talking 10's of 1000's of pounds here) without them incurring tax.

I have the feeling that the govt would like to tax my hard earned cash yet again and punish my altruism. If that's the case I'd rather buy them a car or similar as a thank you.

WRX Wannabe

Take it out of your bank over a few weeks and the give it to them in a BIG BROWN ENVELOPE

P.s if you need anyone to look after your money for a while....

Tiggs

its a gift so tax liability will be inheriance tax if you die soon after. (potentialy more complex than that but only if you are wealthy and/or old would i worry.

T

the above assumes its a real gift, if the revenue suspect its something else you have problem.

Rich Tee

Let him "win" it off you at a game of cards, I believe gambling wins arent taxable (similar to brown envelope job)

R

fast bloke

Nacro - I have been nice to you a couple of times

As above, your only concern is if you pop your clogs in the next seven years and your total estate including any gifts from the last 7 years total over 250k. Then he might be liable for IHT.

I see you posted this at 8.15. Thats about 5 minutes after the lottery finishes?

TelBoy

Another look at me thread. If you're *that* concerned, you'd ask your personal financial adviser, or seek private indepentent advice, rather than splash it all over SN.

beemerboy

Nacro,

Stop being a ****

BB

NACRO

? lol@telboy- I think your comments tell more about what goes on in your head than my motivations for posting the thread.

Obviously I will talk to a financial advisor- I haven't got one or an accountant for that matter, can you recommend one instead of being such a negative fool? I just did what everyone else here seems to do and instead of sending hours googling looking for the answers to a question that came up in conversation between me and the other party posted here instead. Hoping the good folk of scoobynet would be able to put my mind at rest before looking into the matter on Monday when I can get the professional advice.

The fact that you bothered to post your laughable response shows you for the pathetic "little" man you are.

edited to add: I see your drinknig pal posted some crap too- and you have the gall to accuse me of posting "look at me type threads" when you use a BBS to arrange your drinking binges. Ever heard of telephones?


[Edited by NACRO - 9/14/2003 6:59:48 AM]

Dunk

iTrader: (1)

Agree with Tiggs' comments, only exposure lies with Inheritance Tax & your death within 7 (?) years.

D

ProperCharlie

I suppose that would be as opposed to the more common nothing to see here, move along type of thread?

David Lock

Cash never offends... You are taking it out for holiday/car/house improvements whatever.

But I think banks may be on the look out for large cash deposits (drug deal alerts) so your pal should be aware of this.

Or just declare it but, as said, there may be a liability if you die. I think it's on a sliding scale from 0-7 years. Others may correct this. D

RON

Mate, in order to avoid the tax issue totally, you can legally give away £3k per year, I know this is far less than you said, but you could do this legally, and then find another way of giving him the cash, why not ask him what he would do with it, and then fund that!!! ie, if he would buy a new car, pay for it and let him take delivery, of course, you may still need to pay for it in cash so that it doesn't show up in your bank history, I'm sure you can work something out.

Ron.

NACRO

Thanks for the info all

The money will be coming from the sale of a flat and will be going to my ex who I'm still very close to if that makes the matter any different. Perhaps I could say that it was her share of the flat (although she wasn't on the mortgage and never lived there) would that make the gifting of the cash any easier? If I have to do it in 3K tranches it is going to take a while!

Tsunami

As a side note im also looking about gifting some money to family-someone mentioned that u can give 3k in one tax year - now does that mean I can gift 3k to my brother , 3k to his wife , 3k to each nephew all tax free in one year? or does it mean i can only gift a total of 3k in one year only?
Also say if I give 3k to my mum who then gives the 3k to my brother would this classed as a tax free to my brother since now my mum has 'gifted' 3k to my brother herself? Would this mean my brother gets 6k tax free ?
Also I would like to setup a trust fund for my nephews - how much can u put into a trust fund without it incurring tax/how would it you go about it?
Any info appreciated.

NACRO

I'd be careful Tsunami you'll have the scoobynet dead heads on here saying your trying to get everyone to "look at me", over the matter of a few quid.
As if anyone would be so gauche, except of course possibly them as that's obviously how their minds work. Small men with small dreams and limited horizons, actually I pity them.

edited for the purposes of keeping the thread unmoderated.

[Edited by NACRO - 9/14/2003 12:30:16 PM]

scoobydooooo

i think that is just for family members !!

Adam M

Don't know whats going on here.

If its a genuine gift, you can give as much as you like.

Tax man may think its odd, but if its a genuine gift it doesn't matter what he investigates.

You do get clobbered for a degree of inheritance tax if you die within 7 years of the gift.

Tsunami

this is a serious thread, no jokes plz. If you have nothing constructive to say then p155off - nacro has a real point about asking for advice and we dont need ***** giving ****...


I know u can gift say a house / money to people without getting hit for tax provided I live for 7 years but if say if u know u have a real good chance that you wont make the 7 years what other ways can u give money/house and not getting hit for tax.
I have heard some people talk about setting up trusts funds to either limit/avoid the tax.
Another idea - say i add my brother/mum/dad name to a bank account which i have - if say I die would the funds in the joint account incure tax to the other joint name on the account?
Any info will be much appreciated - Nacro if you happen have more info can you post it on here plz. Cheers

Phil

If this is from the sale of a second property then CGT comes into play

NACRO

It's a sale of my primary residence of course!

At least I hope it is, as I understand it even though I've rented the place out for 18 months because I lived in it for 5 yrs prior to this it is classed as my primary residence and therefore not liable to CGT. If it is liable to CGT then I will be considering moving back in there for the 6 months I believe it takes.

Phil

You will need to check to make sure it doesn't get caught under CGT.

Phil

TelBoy

LOL - "(we are talking 10's of 1000's of pounds here)"

Look at me everyone, look!!

PMSL

NACRO

What a fool you are......the reason I specified the amount of money as being 10's of £1,000 was so people didn't just say you are allowed to gift £3K which I already knew about. You are really a pathetic little man, however as the opinion of people like you means very little, I'll just say this to you- Telboy you've made yourself look like a total *** here which is good as everyone can see you for what you are.
Meanwhile away from the trolls thanks for the info everyone.

edited to say BTW anyone interested I think there are few sadder things than some muppet who trolls on many of the threads posted
by another member (Telboy trolls many of the threads I post) merely because they are filled with impotent rage over a comment made months ago. He really is a pathetic little ****.

[Edited by NACRO - 9/15/2003 6:23:04 AM]

Jed Exodus

to most people "10s of 1000s" of pounds isnt "a few quid", but you know what? **** it, its your money and you earned it so do as you please (like you needed someone you dont know to tell you that!)

personaly i have to work 2 jobs to get what i see as a "decent" wage for someone like me, sure i complain from time to time but i get by and that to me is what matters.

letdown

I made a transfer from my current account after a property sale to a friend of mine.......it was for 8k and the bank(Halifax)just asked if it was a gift, which it was. They then warned me that some 3rd party MIGHT call me to see if I was some pimp, drug lord etc..etc. Funny enough they didnt call.

TelBoy

"An amount which exceeds the £3k gift threshold". Understandable.

But no, tens of thousands.

Keep the insults coming...

Luke

£198049875004875739983902874649.00

need to deposit this today in post office. Will i have to put the coppers into £5.00 bags??

Chrisgr31

If giving that sort of money to a friend you need to do it above board, as it is very difficult to hide £10,000 in cash! Or at least hide it safely!

Your friend will almost certainly have to pay it into a bank and on the assumption they don't often pay in that amount of money then the bank wiill ask questions. They would almost certainly ask questions if it was paid in over 10 months too.

Incidentially I also heard the other day that lawyers and accountants estate agnts etc are about to become subject to money laundering rules too. Therefore they have to report any suspicous transactions.

Scooby96

Just give him the cash and advise him to spread the deposits between a few accounts

Scooby96

Chrisgr31 - I believe estate agents, lawyers and accountants already have the duty to report suspicions of money laundering.