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Thomas
Thomas, Solicitor
Category: UK Tax
Satisfied Customers: 7600
Experience:  Exposure to general tax issues
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I have give my nephew £25000 do i need to inform tax office

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I have give my nephew £25000 do i need to inform tax office re inheritance tax
Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

I assume that by “give” you mean that you have made a pure gift of monies to your nephew for which you will not receive anything in return.

There is no legal requirement (or facility) for you to inform HMRC of gifts that you make. The gift status of the transfer becomes important if you die within 7 years of making the gift.

This is because if you survive 7 years from the date of the gift then it will be regarded as a “potentially exempt transfer” which means that it will not be included in your estate for inheritance tax purposes. If you die within 3 years of making the gift then the whole of the gift will be included in your estate for inheritance tax purposes. If you die between 3 to 7 years of making the gift then a percentage of the gift will be included in your estate depending on how long you survived.

In order to demonstrate that the transfer of monies was a gift then I would consider executed a statutory declaration. This is a sworn statement under law, which you can swear in front of any solicitor or £5.00 (if you have drafted it yourself). The Declaration should give your details, the details of your nephew and details of the transfer itself. It should state (if it was) that the transfer was a pure gift of monies for which you did not receive anything in return and for which you did not retain any interest in. It should state that the monies were his from the moment of transfer for him to do as he pleases.

Once the statutory declaration has been execute you should keep it with your records at home.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.

Kindly rate my answer if you are satisfied with the information I have provided.

Kind regards,


Tom
Thomas and 2 other UK Tax Specialists are ready to help you
Customer: replied 3 years ago.

Just the information I needed this has put my mind at rest. I will take


your advice asap

No problem.

Thank you do rating my answer.

Tom

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