How much money can one give as a gift per year without paying tax?

Answer 1

I had a look at the UK government site, and was surprised and horrified to find out there are so many restrictions on gifts.

Here's a link to the info:

http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/PlanningYourPersonalFinancesArticles/fs/en?CONTENT_ID=10013916&chk=FGCHVY

Answer 2

There is no tax on gifts in the UK. So the answer is any amount you like.

The various restrictions that are often mentioned come about in relation to inheritance tax.

Now inheritance tax is payable on death and comes out of the deceased's estate. It is based on the total value of assets belonging to the deceased at the date of death. It is therefore a good idea to reduce this value as much as possible whilst still alive, and the obvious way is to give away money.

If you give away a maximum of £3,000 in any one tax year then this is effective in reducing the value of your estate and thus saving inheritance tax on your eventual death. If you give more then the balance becomes what is known as a Potentially Exempt Transfer (PET). This remains part of your estate for seven years after the date of the gift.

The net result is that you never incur an additional tax liability by making a gift but you may not make a tax saving unless you live for a further 7 years.

Answer 3

you can give as much as you like, but if you die within 7 years, then tax will paid on the amounts gifted at a % depending on how many years after the gift was made, you died. if you die after 7 years then its tax free. however there are a few exceptions with tax free limits for gifts such as monetry wedding gifts (think about 2k) and there is a small gifts limit of £250 per person but unsure of the full legislation. phone a firm of accountants and they shuld be able to tell you over the phone in about 15 minutes and it wont cost you anything.

Answer 4

It depends which country you are from and what is your taxable income.