How to Gift Money: The Easy Guide


If you
re in the lucky position to be able to help friends or family members financially, you’re probably thinking about the best way to go about it.  

Money is a sensitive topic to begin with. In our recent survey on family and finances, we discovered that 56% of the people we asked were embarrassed to ask family for financial helpOn top of money being an awkward subject, there are many other considerations to be made from tax obligations to fair share between family members. But fortunately, there are ways to gift money to your loved ones that will make the whole process a lot easier and less stressful. 

Keep reading to find out how to gift money to family or friends, what the tax implications are, and discover simple tips that make life easier, including talking to an advisor. 

How to gift money 

We all use money, but not many of us are used to talking about it. Recent research shows that 62% of parents would welcome guidance on how to make gifts and loans. As inexperienced as we may be in broaching the subject, having a good conversation beforehand is key to making sure everyone is on the same page and taken care of. Here is a simple step-by-step process to get you started: 

Get prepared 

First, get your thoughts organised by writing down a list of all the things you wish to discuss with your family member or friend. Planning out the conversation beforehand is important, especially if your financial gift is substantial, there are conditions you want to put forward, or just in case the conversation gets emotional. In any case, you’ll have a road map to help guide the conversation in the right direction. 

Here are a few things to think about when giving money as a gift: 

  • How much money do they need and how much can you gift? 
  • Will your financial gift be a recurring arrangement or is it a one-off? 
  • What conditions, if any, do you want to put forward? 
  • What should happen if your relationship breaks down for whatever reason? 
  • What should happen ieither one of you have a change in your financial circumstances later on? 

Choose the right place and time 

The setting is very important for a successful conversation. Find a quiet place where you are unlikely to be interrupted and make sure there is plenty of time available for an in-depth discussionThere is nothing worse than being rushed to finish off such an important conversation. 

Make it clear whether it’s a money gift or a loan 

It may seem obvious to you, but it’s always better to make things clear. Whether you’re expecting to receive the money back at some point or it’s a cash gift with no strings attached, spell it out so everyone is on the same page and there won’t be any confusion later on. 

Prepare the terms and conditions 

Due to the personal relationship, many people think that it’s not necessary to draw up family loan agreements or conditions for a cash gift. However, this is one of the most important things you can do to avoid confusion and even possibly conflict. Find out more about how to establish the ground rules with our guide on terms and conditions for lending money to family. 

Be honest about concerns 

There are considerations to be made on both sides of the conversation. Be open when it comes to your own concerns, but don’t forget to put yourself in your loved one’s shoes as well. Here are two handy articles that will help you see the big picture, from both perspectives: gifting money to family, but also what worries exist when asking family for money. 

Consider the tax implications 

Tax may apply to a financial gift, so make sure you take inheritance tax rules into consideration when planning out a financial gift for your loved ones. Different rules apply to different family members and how much you give them is as important as when the cash gift is given. We put together an easy guide to help you find out how much you can gift per year and what the potential tax liabilities are. Read more in our article about tax inheritance rules. 

Keep notes 

Lastly, don’t forget to write down the important points that have come up during the conversation. This will help both of you, in case you want to revisit the details of your agreement or want to change them later on. 

Types of cash gifts 

Different considerations need to be made depending on what the financial gift is for. Here is how to gift money in various circumstances: 

Weddings 

It’s always been the tradition for the bride’s family to pay for the wedding, but times have changed and parents shouldn’t feel pressured into footing the substantial bill that comes with their children getting married. However, if you do want your cash gift to go towards the happy event, make sure you are open and clear if there are any conditions that will apply to avoid misunderstandings. If you want to be involved and help with the wedding planning, let your family know as well. 

Keep in mind that how much you can gift at a wedding also has tax implications. Depending on your relationship, you can give money tax-free up to a certain amount: 

  • Parents can give up to £5,000 
  • Grandparents can give up to £2,500 
  • Other friends and family members can give up to £1,000 

Always speak to a financial adviser about your specific financial and tax situation. 

House deposit 

One of the most common ways to give money as a gift is towards helping your family members get on the property ladder. recent report by the London School of Economics found that the Bank of Mum and Dad is the 6th biggest mortgage lender in the country, with over £6 billion being gifted from parents to children across UK last year. 

Even though giving money to children is common practice, it’s still a topic many parents find difficult to approach. The best thing to do is making sure you have an honest conversation about how much money they need, how much you can offer and if it’s a loan, what interest you want to charge. The conversation might seem like a business meeting instead of a family get-together, but remember the aim is to reassure everyone involved that their needs are taken care of. 

Another important decision to make when it comes to offering a financial gift for a house deposit is what should happen if the house gets sold at some point in the future. Keep a record of the conversation to make everyone’s life easier in case there is confusion later on down the line. 

Find out more about gifting money for a house deposit with our easy-to-follow guide. 

Buying a car 

If you want to help a loved one pay for a big purchase like a car, there are a few ways to give money as a gift to help out. One option is to provide a financial gift that goes towards paying for the car itself. But don’t forget there will be other expenses that come with owning a vehicle, including insurance, maintenance and fuel. Depending on the circumstances, a better arrangement could be a recurring monthly payment that helps them with the on-going costs of car ownership. Discuss all the options with your family member to make sure you’re choosing the best solution for their needs. 

Education 

With tuition fees on the rise and expensive costs of living, parents and grandparents will often want to help their younger family members to get the best possible start in life by offering a financial gift for attending university. Many parents have already planned ahead and started saving early on, so when the time comes, they’re financially ready to offer their support. 

Even if you plan to offer your children or grandchildren a financial gift towards going to university, it’s important to know all the money options they’ve got available, including university loans, government loans and government grants. University comes with hefty bills, so if you feel like you might not be able to support your young family members by yourself, consider asking other family members to contribute, either with a loan or a money gift. They are likely to be excited to help. In case you are not sure how to broach the topic, we put together a few handy tips in our article Receiving money gifts from parents and other family members.  

The importance of talking to an adviser when giving a financial gift 

Whether you want to give money as a gift or as a loan, to a family member or a friend, it’s important to consider talking to an adviser first. Contact them early on as you start thinking about how to gift money and discuss openly how you wish to proceed. Professional advice is key in making sure you are taking care of the loved ones to the best of your financial ability, while looking after yourself as well. Here are a few questions a financial adviser will help answer: 

  • How much can you afford to give? 
  • How much you will lose out in interest on savings? 
  • Can you afford to give the money as a gift, or is offering a loan a better option? 
  • What to include in a loan agreement? 
  • How much can you gift before you start paying inheritance taxes? 
  • What are the tax liabilities for everyone involved? 

If possible, ask the family member or friend you’re trying to help to join in as well. The more open the conversation, the easier will be to plan out a financial gift that offers the maximum benefits to you and your loved ones. Plus, you’ll have peace of mind talking to a knowledgeable specialist offering you their best advice. 

In conclusion, if you’re thinking about how to gift money, how much money to gift and how to navigate the money conversation in a successful way, the key is to be prepared, open and clear to avoid misunderstandings. Add the professional help of an advisor on top of it and you’ve got a bulletproof strategy that offers your family the support they need in the least stressful way possible. 

Next, find out how to gift money tax-free and how to avoid hefty tax bills by planning things in advance. 


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Cash gifts from parents: top tips & questions

  <span data-contrast="auto">Whether it’s weddings, birthdays or big purchases such as a car or a house, the “Bank of Mum and Dad” is </span><span data-contrast="auto">increasingly </span><span data-contrast="auto">where the financial help comes from. </span><a href="https://hodgebank.co.uk/intermediaries/news/its-all-relative-new-survey-reveals-that-56-of-people-are-embarrassed-to-ask-family-for-financial-help/"><span data-contrast="none">Our recent survey</span></a><span data-contrast="auto"> has revealed that a third of people have received a financial gift from family, with those aged between 25-34 as the most likely</span><span data-contrast="auto"> recipients. </span><span data-contrast="auto">I</span><span data-contrast="auto">f you’re getting ready to have that difficult money conversation</span><span data-contrast="auto"> with mum and dad</span><span data-contrast="auto">, you’re not alone.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">However, </span><span data-contrast="auto">r</span><span data-contrast="auto">eceiving cash gifts from parents</span><span data-contrast="auto"> doesn’t have to be embarrassing or stressful. Here is what to keep in mind to</span><span data-contrast="auto"> make the whole process as smooth as possible, for both you and your parents.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Why</span><span data-contrast="none"> can</span><span data-contrast="none"> </span><span data-contrast="none">receiving </span><span data-contrast="none">cash gifts from parents</span><span data-contrast="none"> be difficult</span><span data-contrast="none">?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">You’re no doubt relieved </span><span data-contrast="auto">if you know</span><span data-contrast="auto"> that there’s a </span><span data-contrast="auto">cash gift from relatives</span><span data-contrast="auto"> coming your way. </span><span data-contrast="auto">But you might also be secretly dreading the preceding conversation. Understanding why you’re not looking forward to it can actually </span><span data-contrast="auto">help the </span><span data-contrast="auto">conversation move forward</span><span data-contrast="auto"> – often the issue is imagined rather than real!</span><span data-contrast="auto"> Here are the most common reasons why </span><span data-contrast="auto">receiving cash gifts</span><span data-contrast="auto"> can make you feel uncomfortable:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">You don’t like talking about money</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Money and politics are </span><span data-contrast="auto">carefully </span><span data-contrast="auto">avoided at family dinners and most other social settings, so most of us don’t have enough experience to broach the subject.</span><span data-contrast="auto"> Remember that your parents might feel the same</span><span data-contrast="auto"> way</span><span data-contrast="auto">, so it’s okay to feel a bit uneasy.</span><span data-contrast="auto"> Money doesn’t need to be a negative or taboo topic – everyone needs and uses money after all! </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Past </span><span data-contrast="none">family </span><span data-contrast="none">issues about money</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">There’s a reason why we have the saying “money and family don’t mix”. If you’ve </span><span data-contrast="auto">received cash gifts</span><span data-contrast="auto"> from parents before and things </span><span data-contrast="auto">didn’t go smoothly,</span><span data-contrast="auto"> make sure you clear out any </span><span data-contrast="auto">leftover issues first.</span><span data-contrast="auto"> Sitting down face-to-face and having an open, honest conversation is the best way to move forward.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Strong feelings</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Money </span><span data-contrast="auto">is strongly connected to our</span><span data-contrast="auto"> status</span><span data-contrast="auto"> and how we feel about our </span><span data-contrast="auto">independence or worth</span><span data-contrast="auto">. Remember you’re not the odd one out</span><span data-contrast="auto"> and receiving a gift or loan from a family member is very common. It’s also important to remember that the gift comes from a place of love and wanting the best for you.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Concerns about your parents’ financial stability</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Children often worry that parents can be overly zealous in trying to help and forget that they have their own financial needs to take care of. Involving a third party such as a financial adviser can be beneficial for everyone involved. You’ll know that your parents are protected and they’ll know they’re giving you the best possible financial assistance.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Top tips when </span><span data-contrast="none">receiving a cash gift from parents</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">Whether you’re getting prepared to ask for the cash gift or your parents are already thinking of giving you one, here are a few things you can do before and during the conversation so you and your family can make the most out of it:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Be prepared</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Research is incredibly important, so make sure you are prepared well in advance however you intend to spend the money. Know how much money you require and whether you need to rely on your parents for future expenses as well. Giving them the full picture beforehand will help them plan their finances better and give you the support you need.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Be clear</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Clarify, clarify, clarify. Is it a l</span><span data-contrast="auto">oan or </span><span data-contrast="auto">a </span><span data-contrast="auto">gift</span><span data-contrast="auto">? Are you </span><span data-contrast="auto">being given</span><span data-contrast="auto"> a blank cheque or </span><span data-contrast="auto">do </span><span data-contrast="auto">conditions apply? </span><span data-contrast="auto">Will your parents have part ownership of the property or possession you’re trying to buy? </span><span data-contrast="auto">It might seem like you’re conducting business instead of talking to mum and dad, but </span><span data-contrast="auto">getting the wrong idea about what it is they’re offering you </span><span data-contrast="auto">will make it much more difficult further down the line. If you’re not sure, ask for clarification at every step.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Keep a record</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Receiving a </span><span data-contrast="auto">cash gift from a relative</span><span data-contrast="auto"> off the record is </span><span data-contrast="auto">fine</span><span data-contrast="auto"> for small gifts, but can spell trouble for more substantial ones. It’s always a good idea to outline the main points of the conversation in writing, especially if there are conditions to be </span><span data-contrast="auto">met</span><span data-contrast="auto"> or if the gift </span><span data-contrast="auto">is meant to be paid back later.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Be patient</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">If you’re the one raising the topic with your parents</span><span data-contrast="auto"> first</span><span data-contrast="auto">, give them plenty of time to figure out what is the best way to assist you financially. Parents may also want to know how you’re spending the money and </span><span data-contrast="auto">perhaps </span><span data-contrast="auto">have an input in that decision. Move the conversation forward by being patient and trying to put yourself in their shoes.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Plan for a c</span><span data-contrast="none">hange of circumstances</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">You might have to</span><span data-contrast="auto"> sell the house</span><span data-contrast="auto"> your parents helped you pay for, or they may experience financial difficulties later on in life</span><span data-contrast="auto">. </span><span data-contrast="auto">Even f</span><span data-contrast="auto">all</span><span data-contrast="auto">ing</span><span data-contrast="auto"> out </span><span data-contrast="auto">with your family is a possibility. Make sure you discuss what should happen in these unfortunate circumstances before you </span><span data-contrast="auto">receive a cash gift from parents</span><span data-contrast="auto">.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Top questions to ask before receiving </span><span data-contrast="none">cash gifts from parents</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <ul> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">Can my parents </span><span data-contrast="auto">afford to </span><span data-contrast="auto">give me money?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">Is it a l</span><span data-contrast="auto">oan or a gift</span><span data-contrast="auto">?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Are there any conditions for </span><span data-contrast="auto">receiving the cash gift</span><span data-contrast="auto">?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Once the </span><span data-contrast="auto">cash </span><span data-contrast="auto">gift is given will the property </span><span data-contrast="auto">or possession bought </span><span data-contrast="auto">be </span><span data-contrast="auto">entirely yours?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Will your parents want to have a say in</span><span data-contrast="auto"> what </span><span data-contrast="auto">you</span><span data-contrast="auto"> purchase?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="10" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">What happens if you sell the </span><span data-contrast="auto">property</span><span data-contrast="auto"> they helped you purchase?</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> </ul> <span data-contrast="auto">Did you know that you may have to pay </span><span data-contrast="auto">tax on the gift from your parents</span><span data-contrast="auto">? Make yourself familiar with </span><span style="text-decoration: underline"><a href="https://hodgebank.co.uk/2020/08/05/gifting-and-inheritance-tax/">Inheritance Tax rules and wedding gift taxes</a></span><span data-contrast="auto"><span style="text-decoration: underline"> </span>to avoid unpleasant tax bills in the future.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span>

More details

How to Gift Money for a House Deposit

<span data-contrast="auto"><br /> Buying a home is one of the biggest expenses in modern day life.</span><span data-contrast="auto"> Typically, it takes around 8 years to save </span><span data-contrast="auto">for </span><span data-contrast="auto">a reasonable deposit of 25%</span><span data-contrast="auto">, which is why many </span><span data-contrast="auto">of us</span><span data-contrast="auto"> are now turning to the bank of mum and dad to help.</span><span data-contrast="auto"> As of 2019, </span><a href="https://www.mortgageintroducer.com/openwork-bank-of-mum-and-dad-need-advice/"><span data-contrast="none">the London School of Economics</span></a><span data-contrast="auto"> suggested that </span><span data-contrast="auto">families</span><span data-contrast="auto"> </span><span data-contrast="auto">are</span><span data-contrast="auto"> the sixth biggest mortgage lender, with over six billion</span><span data-contrast="auto"> pounds</span><span data-contrast="auto"> given to offspring to help them step onto the property ladder.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">In </span><a href="https://hodgebank.co.uk/intermediaries/news/infographic-money-its-all-relative/"><span data-contrast="none">our own survey we carried out on family lending and attitudes toward</span><span data-contrast="none">s</span><span data-contrast="none"> it</span></a><span data-contrast="auto">, we discovered that 11% of the 3000 people surveyed received help from a family member to purchase a property, </span><span data-contrast="auto">so it’s more common than you might believe. However, it’s not as straightforward as simply handing over the money</span><span data-contrast="auto"> –</span><span data-contrast="auto"> there</span><span data-contrast="auto"> </span><span data-contrast="auto">are certain requirements to </span><span data-contrast="auto">mortgages with gifted deposits</span><span data-contrast="auto">, including who can provide the funds to begin with.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">What is a </span><span data-contrast="none">mortgage with a gifted deposit</span><span data-contrast="none">?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">A </span><span data-contrast="auto">mortgage with a gifted deposit</span><span data-contrast="auto"> is where a family member – usually parents or grandparents – give money to</span><span data-contrast="auto">ward</span><span data-contrast="auto"> a house deposit</span><span data-contrast="auto">, </span><span data-contrast="auto">and </span><span data-contrast="auto">the amount can either cover the full deposit or part of it</span><span data-contrast="auto">.</span><span data-contrast="auto"> This can help the family member receiving the gift get access to better mortgage deals and lower monthly payments, making day</span><span data-contrast="auto">–</span><span data-contrast="auto">to</span><span data-contrast="auto">–</span><span data-contrast="auto">day life more affordable.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">However, when </span><span data-contrast="auto">gifting money for a house deposit</span><span data-contrast="auto">, it needs to be just that – a gift. If </span><span data-contrast="auto">the money is</span><span data-contrast="auto"> expected to be paid back then it’s counted as a loan and it’s likely that the lender will factor this into their affordability calculations.</span><span data-contrast="auto"> If you’re considering </span><span data-contrast="none">giving a family member a loan</span><span data-contrast="none"> </span><span data-contrast="auto">to purchase a property, take a look at our guide.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Who can give a gifted deposit?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">Who can give a gifted deposit will depend on the mortgage lender and their criteria. Generally, </span><span data-contrast="auto">lenders will only allow a </span><span data-contrast="auto">house deposit gift </span><span data-contrast="auto">from parents</span><span data-contrast="auto">, siblings and grandparents</span><span data-contrast="auto">.</span><span data-contrast="auto"> </span><span data-contrast="auto">Gifts</span><span data-contrast="auto"> from more distant family members such as aunts and uncles may not be permitted.</span><span data-contrast="auto"> In most cases, gifted deposits from friends won’t be permitted.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">If you’re thinking about</span><span data-contrast="auto"> </span><span data-contrast="auto">gifting money for a house deposit</span><span data-contrast="auto">, we recommend seeking the help of a financial advis</span><span data-contrast="auto">e</span><span data-contrast="auto">r to ensure you can afford the lump sum. </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Proof of </span><span data-contrast="none">financial </span><span data-contrast="none">gift</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">A key requirement for </span><span data-contrast="auto">gifting money for a house deposit</span><span data-contrast="auto"> is that you’ll </span><span data-contrast="auto">need to include proof of the financial gift.</span><span data-contrast="auto"> This will be a written declaration stating that the money is a gift and i</span><span data-contrast="auto">s</span><span data-contrast="auto"> not expected to be paid back. Additionally, the </span><span data-contrast="auto">mortgage deposit gift letter</span><span data-contrast="auto"> will need to state that it doesn’t grant the </span><span data-contrast="auto">person gifting</span><span data-contrast="auto"> any rights </span><span data-contrast="auto">to the property. </span><span data-contrast="auto">Most mortgage advis</span><span data-contrast="auto">e</span><span data-contrast="auto">rs can provide a letter template</span><span data-contrast="auto"> for you. I</span><span data-contrast="auto">f </span><span data-contrast="auto">not</span><span data-contrast="auto"> you can seek out the assistance of a solicitor instead, but be aware this may invoke an additional cost. </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">Most </span><span data-contrast="auto">mortgage deposit gift letters</span><span data-contrast="auto"> will include the following details:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <ul> <li data-leveltext="" data-font="Symbol" data-listid="1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">The name of the person receiving the gift</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="1" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">The amount gifted</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="1" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">A declaration that it’s a gift with no repayment required</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> </ul> <ul> <li data-leveltext="" data-font="Symbol" data-listid="1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">A declaration that the person gifting has no stake in the property </span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="1" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">A statement that the person gifting is of sound mind</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> </ul> <span data-contrast="auto">The letter will need to be signed by the </span><span data-contrast="auto">party gifting the </span><span data-contrast="auto">deposit</span><span data-contrast="auto"> and by a witness too.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Additional documents required</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">Alongside the </span><span data-contrast="auto">mortgage deposit gift letter</span><span data-contrast="auto">, it’s likely that the family member gifting the deposit will have to provide personal documents such as a photo ID, proof of address and their bank statements may also be requested. This is so the mortgage lender can comply with anti-money laundering regulations.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Declaration of trust</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">If you’re </span><span data-contrast="auto">gifting money for a house deposit</span><span data-contrast="auto"> </span><span data-contrast="auto">to</span><span data-contrast="auto"> a family member </span><span data-contrast="auto">who</span><span data-contrast="auto"> co-purchasing a house with a partner or friend, you may wish to protect your gift with a declaration or deed of trust. </span><span data-contrast="auto">This states who the money was gifted to so if they split up or disagreements are had, it’ll ensure that the money will remain the property of your family member. However, if they later get married, this may affect the deed of trust.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Do you have to pay tax on gifted deposits?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">No, you don’t have to pay tax on gifted house deposits</span><span data-contrast="auto">, providing the person gifting the money doesn’t die within seven years of giving the deposit. </span><span data-contrast="auto">If they pass away prior to the seven years and their estate is worth over £325,000 including the deposit, you’ll be liable to pay </span><span data-contrast="none">inheritance tax</span><span data-contrast="auto">.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">That’s our guide to </span><span data-contrast="auto">gifting money for a house deposit</span><span data-contrast="auto">. Want to find out more </span><span data-contrast="auto">about </span><span data-contrast="none">how to </span><span data-contrast="none">gif</span><span data-contrast="none">t</span><span data-contrast="none"> money</span><span data-contrast="auto">? Read our article on </span><strong><a href="https://hodgebank.co.uk/2020/08/05/gifting-and-inheritance-tax/">how to give tax free</a></strong><span data-contrast="auto">, next.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span>

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The Easy Guide to Gifting & Inheritance Tax

<span data-contrast="auto"><br /> Whether you want to boost the grandchildren’s savings account, help your </span><span data-contrast="auto">child</span><span data-contrast="auto"> get onto the property ladder</span><span data-contrast="auto">,</span><span data-contrast="auto"> or support a friend in need, gifting money is generous </span><span data-contrast="auto">– </span><span data-contrast="auto">but also complicated.</span><span data-contrast="auto"> There are </span><span data-contrast="auto">inheritance </span><span data-contrast="auto">tax rules that apply to money gifts, especially if the financial help is substantial. </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">It’s always a good idea to contact a financial advis</span><span data-contrast="auto">e</span><span data-contrast="auto">r to help you disentangle the ins and outs of money gifting, but if you want to get an idea about how </span><span data-contrast="auto">gifting tax-free</span><span data-contrast="auto"> generally works and what your </span><span data-contrast="auto">tax-free gift limit</span><span data-contrast="auto"> is, here is </span><span data-contrast="auto">an</span><span data-contrast="auto"> easy guide.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Why is there a tax on gifts?  </span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">T</span><span data-contrast="auto">he whole process </span><span data-contrast="auto">of giving money to family or friends </span><span data-contrast="auto">is governed by rules designed to prevent people from not paying </span><span data-contrast="auto">Inheritance Tax </span><span data-contrast="auto">by giving away all their money before they die. It’s why</span><span data-contrast="auto"> </span><span data-contrast="auto">there are </span><span data-contrast="auto">tax-free gift limits</span><span data-contrast="auto"> that</span><span data-contrast="auto"> mak</span><span data-contrast="auto">e</span><span data-contrast="auto"> sure you </span><span data-contrast="auto">can’t give away large amounts of money without paying tax.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">What is considered a gift?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">According to </span><a href="https://www.gov.uk/inheritance-tax/gifts#:~:text=A%20gift%20can%20be%3A,value%20counts%20as%20a%20gift"><span data-contrast="none">GOV.UK</span></a><span data-contrast="none">,</span><span data-contrast="auto"> a gift is considered anything that has a value </span><span data-contrast="auto">– that could be</span><span data-contrast="auto"> </span><span data-contrast="auto">cash</span><span data-contrast="auto">, property</span><span data-contrast="auto">,</span><span data-contrast="auto"> and other possessions</span><span data-contrast="auto">. It also includes</span><span data-contrast="auto"> a loss in value when possessions exchange hands</span><span data-contrast="auto">. For example, </span><span data-contrast="auto">if a house is sold to you at less than the value it’s worth, the difference is considered a gift. Which means that if </span><span data-contrast="auto">inheritance </span><span data-contrast="auto">tax is due, this can apply not only to money gifts, but also to other </span><span data-contrast="auto">gifted </span><span data-contrast="auto">possessions</span><span data-contrast="auto">,</span><span data-contrast="auto"> such as cars and jewellery.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Gifting </span><span data-contrast="none">and inheritance tax</span><span data-contrast="none">: the basics</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto">You can give away a total of £3,000 per financial year without being liable for</span><span data-contrast="auto"> inheritance</span><span data-contrast="auto"> tax. This is your annual exemption. If you haven’t used it during the year, you can carry it forward to the next (with the limit increasing to £6,000) but only for one year. You can also give an unlimited amount of small cash gifts</span><span data-contrast="auto">,</span><span data-contrast="auto"> up to £250 per person</span><span data-contrast="auto">,</span><span data-contrast="auto"> as long as no other exemptions are being used.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">The general rule is that as long as you keep the money you give to your family under the £3,000 mark, you </span><span data-contrast="auto">are not liable to pay inheritance tax. However, personal circumstances vary</span><span data-contrast="auto">,</span><span data-contrast="auto"> so it’s vital to speak to a financial adviser about your specific situation.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">How much can you gift tax-free</span><span data-contrast="none"> to each family member?</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Things </span><span data-contrast="auto">can</span><span data-contrast="auto"> get a bit more complicated as different rules apply to different family members. Here is what you need to know.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Gifting money to your spouse</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Y</span><span data-contrast="auto">our wife, husband</span><span data-contrast="auto">,</span><span data-contrast="auto"> or civil partner are considered exempt beneficiaries. This means that no matter how much you give them, they are not liable for tax as long as they live in the UK permanently. Gifts to an unmarried partner may trigger Inheritance Tax rules</span><span data-contrast="auto"> – speak to a financial adviser about your specific situation for more help.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Gifting tax-free</span><span data-contrast="none"> to your children</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">When it comes to children, i</span><span data-contrast="auto">t’s not only how much </span><span data-contrast="auto">money </span><span data-contrast="auto">you can give </span><span data-contrast="auto">them</span><span data-contrast="auto">, it’s also when you give it that matters. </span><span data-contrast="auto">As will all other recipients, y</span><span data-contrast="auto">ou can give your children </span><span data-contrast="auto">money up to the annual exemption and it will not be liable for tax. </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">And you can gift </span><span data-contrast="auto">money in excess of the annual exemption and not pay </span><span data-contrast="auto">inheritance </span><span data-contrast="auto">tax, as long as the financial gifts are given at least seven years before you die. </span><span data-contrast="auto">The idea here is that the money should not have been an inheritance. </span><span data-contrast="auto">If you </span><span data-contrast="auto">give the gift and live for another seven years, it’s a gift and not inheritance money. But if you give the gift and pass away within the next seven years, it will be considered an inheritance</span><span data-contrast="auto">,</span><span data-contrast="auto"> and so</span><span data-contrast="auto"> tax of up to 40% is owed </span><span data-contrast="auto">– </span><span data-contrast="auto">depending on how many years have passed since the gift was offered</span><span data-contrast="auto">,</span><span data-contrast="auto"> and whether the value exceeds £325,000.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">If you die between three and seven years after making a gift, a mechanism called “taper relief” comes into action</span><span data-contrast="auto">,</span><span data-contrast="auto"> which means the Inheritance Tax is applied at a reduced rate.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">According to </span><a href="https://www.gov.uk/inheritance-tax/gifts"><span data-contrast="none">GOV.UK</span></a><span data-contrast="auto">, this is how the percentage of tax paid varies according to the number of years between gift and death: </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <table data-tablestyle="MsoNormalTable" data-tablelook="1184"> <tbody> <tr> <td data-celllook="69905"><b><span data-contrast="none">Years between gift and death</span></b><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><b><span data-contrast="none">Tax paid</span></b><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">less than 3</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">40%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">3 to 4</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">32%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">4 to 5</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">24%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">5 to 6</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">16%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">6 to 7</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">8%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> <tr> <td data-celllook="69905"><span data-contrast="none">7 or more</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> <td data-celllook="69905"><span data-contrast="none">0%</span><span data-ccp-props="{"201341983":0,"335559740":240}"> </span></td> </tr> </tbody> </table> <span data-contrast="auto"><br /> If your gift is less than £325,000, it will be added to the value of your estate and tax is applied to the amount that goes over the threshold. For example, if your estate is worth £320,000 and you gifted £10,000, your estate will only pay tax on the difference between the total value and the £325,000 threshold, which in this example is £5,000.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">If your gift is more than £325,000, tax needs to be paid on the total value.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">Keep in mind that the seven-year rule doesn’t apply to the annual exemption of £3,000. And t</span><span data-contrast="auto">here is </span><span data-contrast="auto">also</span><span data-contrast="auto"> </span><span data-contrast="auto">another </span><span data-contrast="auto">£5,000 annual exemption for parents giving to children when they marry</span><span data-contrast="auto">.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">It’s always important to speak to a financial adviser if you’re considering giving a large financial gift so you can get personalised advice to your situation.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Gifting money to grandchildren</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">Whether it’s pocket money or a graduation gift, </span><span data-contrast="auto">if you wish to </span><span data-contrast="auto">gift tax-free</span><span data-contrast="auto"> mon</span><span data-contrast="auto">ey to grandchildren</span><span data-contrast="auto">, the s</span><span data-contrast="auto">ame seven-year rule discussed above</span><span data-contrast="auto"> applies</span><span data-contrast="auto">. In this case as well, the </span><span data-contrast="auto">tax-free gift limit</span><span data-contrast="auto"> is</span><span data-contrast="auto"> £3,000 is available and there is another </span><span data-contrast="auto">£2,500 exemption for money given to grandchildren when they marry</span><span data-contrast="auto">.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">Types of </span><span data-contrast="none">tax-free gifts</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <h4><span data-contrast="none">Small cash gifts</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">According to HRMC, a small cash gift is considered anything under £250. In this case, you don’t have to pay tax as long as there are no other exemptions being used. For example, if </span><span data-contrast="auto">you give the same family member</span><span data-contrast="auto"> £3,000 as well as a small cash gift of £250 during the same financial year, you </span><span data-contrast="auto">may</span><span data-contrast="auto"> be liable for tax for the value of £250.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Wedding gift</span><span data-contrast="none">s</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">The rules are different when it comes to wedding or civil ceremony gift</span><span data-contrast="auto">s</span><span data-contrast="auto">. </span><span data-contrast="auto">The </span><span data-contrast="auto">tax-free gift lim</span><span data-contrast="auto">its</span><span data-contrast="auto"> vary depending on the relationship:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <ul> <li data-leveltext="" data-font="Symbol" data-listid="13" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">Parents can give </span><span data-contrast="auto">up to £5,000</span><span data-contrast="auto"> tax-free to children</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="13" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">Grandparents can give up to £2,500 tax-free to grandchildren</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="13" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">Any other person can give up to £1,000 tax-free</span><span data-ccp-props="{"134233279":true,"201341983":0,"335559739":160,"335559740":259}"> </span></li> </ul> <span data-contrast="auto">Keep in mind that there is </span><span data-contrast="auto">one</span><span data-contrast="auto"> condition</span><span data-contrast="auto">:</span><span data-contrast="auto"> that the wedding </span><span data-contrast="auto">has </span><span data-contrast="auto">actually take</span><span data-contrast="auto">n</span><span data-contrast="auto"> place. If the event is called off, the wedding gift is no longer exempt from tax.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h4><span data-contrast="none">Cash gifts for Christmas and birthdays</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h4> <span data-contrast="auto">If you’re </span><span data-contrast="auto">giving </span><span data-contrast="auto">a cash gift</span><span data-contrast="auto"> for Christmas or birthdays, this is considered tax free as long as the giver can maintain their standard of living after making the gift. There is a bit of ambiguity as to how this gets decided, but the main point is that small gifts are </span><span data-contrast="auto">not the target for inheritance tax rules</span><span data-contrast="auto">. To avoid any surprise tax bills, it is best to ask for the guidance of a </span><span data-contrast="auto">financial advis</span><span data-contrast="auto">e</span><span data-contrast="auto">r</span><span data-contrast="auto"> before </span><span data-contrast="auto">giving (or </span><span data-contrast="auto">accepting</span><span data-contrast="auto">)</span><span data-contrast="auto"> any substantial gifts.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <h3><span data-contrast="none">The basic rules of </span><span data-contrast="none">gifting </span><span data-contrast="none">tax-free</span><span data-ccp-props="{"201341983":0,"335559738":40,"335559739":0,"335559740":259}"> </span></h3> <span data-contrast="auto"> In summary, you can </span><span data-contrast="auto">give money </span><span data-contrast="auto">to loved ones </span><span data-contrast="auto">without paying tax when:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <ul> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">You give the gift </span><span data-contrast="auto">at least</span><span data-contrast="auto"> seven years before you die</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">You give the gift to your spouse</span><span data-contrast="auto"> or</span><span data-contrast="auto"> civil partner</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">The </span><span data-contrast="auto">total </span><span data-contrast="auto">amount is less than </span><span data-contrast="auto">the</span><span data-contrast="auto"> annual allowance of £3,000</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="4" data-aria-level="1"><span data-contrast="auto">The gift is a small cash payment of less than £250</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="5" data-aria-level="1"><span data-contrast="auto">The gift is a wedding gift of up to 1,000 (</span><span data-contrast="auto">or £5,000 if the gift is for a child and £2,500 if it is meant for a grandchild) and the wedding has taken place</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> <li data-leveltext="" data-font="Symbol" data-listid="8" data-aria-posinset="5" data-aria-level="1"><span data-contrast="auto">The gift is a</span><span data-contrast="auto">n ordinary </span><span data-contrast="auto">Christmas</span><span data-contrast="auto"> or</span><span data-contrast="auto"> birthday present and </span><span data-contrast="auto">you</span><span data-contrast="auto"> can show making the gift hasn’t affected </span><span data-contrast="auto">your</span><span data-contrast="auto"> standard of living</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></li> </ul> <span data-contrast="auto">Remember, it’s always better to be on the safe side and ask for professional advice from an advis</span><span data-contrast="auto">e</span><span data-contrast="auto">r to make sure your gift is indeed free of any tax obligations.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span> <span data-contrast="auto">Not sure how to discuss the financial gift you want to offer with your family? Here is an easy guide to help you <a href="https://hodgebank.co.uk/2020/07/16/asking-family-for-money/"><strong>navigate the conversation about </strong></a></span><span data-contrast="auto"><strong>gifting money to family</strong> </span><span data-contrast="auto">in a successful way.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span>

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