Gifting money to children

Hi Sheena and welcome to the money.co.uk community,

I'm sure some of the other members will be able to help answer your question, but in the mean time you might find this guide useful in answering some of your tax questions.

https://my.money.co.uk/guides/guide-details.htm#id=7483

Hi,

Just to summarise - you can gift as much as you want without income tax penalties. It may incur an inheritance tax penalty if you die within 7 years of making the gift, but that's only if your entire estate at death (including all monies gifted in the last 7 years) is more than ?325,000.

However, you might fall victim to the 'depletion of assets' rule if you try to access benefits or free / subsidised care following the gifting. This is to stop the wealthy gifting their assets then getting the state to pay for their long term care.