If you have say 3 recipients does this mean they have to share the amount or is it each.
2006-11-04 23:24:36 · 2 answers · asked by David H 1 in Business & Finance ➔ Taxes ➔ United Kingdom
as far as I know, the total gift aid which is claimed back cannot be more than the amount you pay in income tax
2006-11-05 06:23:58 · answer #1 · answered by Andrew M 2 · 0⤊ 0⤋
First note that there is no tax on gifts. Making a gift does not increase anyone's tax liability.
If you make gifts in any particular tax year then (subject to the notes below) the first £3,000 will be effective in reducing the value of your estate for Inheritance Tax purposes. Any balance will be a "Potentially Exempt Transfer" (PET) and will still be counted as part of your estate. Once you survive 7 years then the PET becomes fully exempt.
Note you can also make an unlimited number of gifts of up to £250 per person, gifts in consideration of marriage and larger gifts which are regular and out of income rather than capital. None of these count towards your £3,000 total.
If you do not use the £3,000 in any one year then it can be carried forward to the next year (enabling £6,000 to be excluded from your estate) but no further.
Does this answer your question?
2006-11-05 17:44:45 · answer #2 · answered by tringyokel 6 · 0⤊ 0⤋