The father wants to give each of his two sons a cash gift of approx 25k. Will they be liable to CGT - should he do it over 3 yrs so the cgt pa isn't exceeded? Are there any other tax implications?
T Elmes
Related resources
Replies (3)
Please login or register to join the discussion.
Do you mean cash?
Do you mean actual cash as in notes and coins (of any currency) or travellers cheques (as opposed to ordinary bank cheques)?
If so there many be money laundering reporting issues to consider.
You should be particularly concerned if cash is in the form of 500 euro notes (as these are the notes of choice for villains!).
If you are an MLRO you can get confidential one-to-one email support, information and NewsAlerts from my website www.mlrosupport.co.uk.
David
[email protected]
A straightforward gift of cash...
...should not have any CGT implications as the asset is generally treated as exempt (s21 TCGA 1992 - it's a negative definition).
The only real tax to worry about is IHT. A straightforward gift from one individual to another without any "strings attached" should just be treated as a PET. The father will of course have his annual exemption (£3k and £3k from the year before if not used).
Cash ...
... not necessarily actual currency but, say, money on bank deposit is not a chargeable asset as long as it isn't in foreign currency. So there shouldn't be any CGT issue. The gifts are potentially exempt transfers for IHT purposes.