Everyone gets a providing permitting and this allows you to present a certain sum of money to anyone you end up picking each season without the risk of monetary present tax.
The annual permitting appears at £3,000 for the 2011/12 tax season, so that you can present up to £3,000 to your kids (or to anyone else you choose) this season without any monetary present tax effects.
It's important to remember that this £3,000 restrict is applicable as a complete and per person, so you would need to divided the £3,000 between your kids, rather than providing them £3,000 each if you desired the money to stay exempt from monetary present tax.
However, if you have not used last season's permitting you can present £6,000 this season and still prevent monetary present tax concerns.
Special occasions
If you are preparing to provide your son or girl a present to enjoy a holiday then you found that the present is exempt from its monetary present tax obligation.
Parents can currently give their son or girl up to £5,000 as a wedding or city relationship present, tax free.
However, this only appears if the wedding goes ahead; if you make the present but the wedding is known as off or terminated then it will not be exempt from monetary present tax.
Small money presents are also exempt, and each season you can quit to £250 to as many people you like without any monetary present tax obligation.
You can discover more information of present exceptions on the HMRC web page .
Regular payments
If you want to offer a economical side to your son or girl, then you might want to consider choosing to pay them a frequent quantity monthly rather than providing a mass sum.
This is because frequent expenses are omitted from monetary present tax obligation, as long as they come from your earnings (not your savings) and never impact your way of life i.e. you never have to offer your home to purchase the expenses.
