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IHT Gifts from Income

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My wife and I have a joint bank account

 

I have monthly SO’s set up for my grandchildren for regular Pocket money...

I want it to be arranged as payments from me,

although coming from a joint bank account(the contents of which is mainly my monthly pension fund payments).

i.e to be seen as gifts from My income for Hmrc purposes.

 

If I get my wife to write and sign a note/letter for my records,that this is the case(the SO’s are from me and not from jointly or her) would this suffice for HMRC?

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If the total value of the gifts to the grandchildren do not exceed £3000 in total each year, there would be no inheritancelink3.gif Tax issues. In addition, if the value of your estate falls below the IHT threshold (currently £325,000), there wouldn't be any tax to pay anyway.

 

From a joint account, with your wife's consent, you could increase the total gifts to £6000 each year by combining both your annual allowances. This link provides some information on the subject: https://www.saga.co.uk/magazine/money/personal-finance/giving/tax-and-gifting-money-to-children


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I am aware of annual gift allowances and IHT thresholds,but I want to be specific wrt gifts from income!

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Hi.

 

Is the small gifts allowance of £250pa per person enough to cover what you're doing?

 

I'll check the HMRC website for gifts out of income, but you may need to ring them with your specific question about the joint account. They're very helpful on the phone.

 

HB


Illegitimi non carborundum

 

 

 

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Tried writing to them 6months ago,but still waiting for reply...not expecting anything now!

Small gifts doesn’t help....thanks.

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This is what the HMRC website says about gifts from normal income, but I think there may be more to it than this. I wonder if it might help to set up your own bank account so the gifts can be shown to be just from you, but as I said you probably need to check with the Revenue or talk to an accountant.

 

https://www.gov.uk/inheritance-tax/gif

 

HB


Illegitimi non carborundum

 

 

 

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Tried writing to them 6months ago,but still waiting for reply...not expecting anything now!

Small gifts doesn’t help....thanks.

 

You could try ringing.

 

HB


Illegitimi non carborundum

 

 

 

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Thanks...I might wait a little longer for postal reply...would like answer in writing.....

 

I know I can open a sole bank account,but I have been making these regular gifts from joint acc. for a few years now,...so was wanting to cover this if possible.,...and thought a letter,as mentioned might cover it.

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