Can I give a cash gift to my sister with no tax implications for myself?

Can I give a cash gift to my sister with no tax...

Didn't find your answer?

I have been trying to find information regarding cash gifts(none charity)

I'm a sole trader and want to help my sister with money as she can't find a job.

Does the gift come with tax benefits? So If I gave my sister £1,000 would this be taken from my tax bill ?
 

Replies (9)

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By User deleted
04th May 2012 12:57

Taken from your tax bill?

Of course not

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By pauld
04th May 2012 13:14

tax deductible if

Sister working for you, nudge nudge wink wink !

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By Steve Knowles
04th May 2012 15:06

Giving/Paying

"Giving" £1000 to your sister will have no tax consequences for either of you, but if she was to do some work for you for which she could justifiably charge a fee, it could be included in your business accounts. However that would also turn it into potentially taxable income (to be declared to HMRC) for her - not a problem if she has no other income in the year, but if she was to find a new job, she could have a tax bill at the year end.

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By Chris Wise
04th May 2012 16:47

DWP

And if it is earnings for work done and she is claiming benefits she would have to declare it to the DWP

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By Marion Hayes
04th May 2012 21:03

No

There are always implications!!

For your sister a gift of cash is received tax free.

You position will not be affected from an income tax point of view but, depending on what else happens in the year, there could be inheritance tax implications.

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By lobas
06th May 2012 18:43

hmm she has actually done the odd bit of work which I never thought would justifiy.

Answers the phone, takes notes, writes bit for the business bog.

 

How would this work, as this would be like back pay now?

 

 

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By User deleted
06th May 2012 21:30

It should be mentioned ...

... there is a annual gift exemption of £3000 in total each tax year which can be given with no Inheritance Tax implications, and unused allowances can be carried forward one year so potentially you can gift up to £6000 to her.

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By pauld
07th May 2012 13:03

is this a new concept?

 the business bog ?

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By ShirleyM
07th May 2012 13:34

Is this what they call toilet humour?

 

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