They are called PETs 'Potentially Exempt Trannsfers' - broadly if the person making the gift lives for a further 7 years then the gift falls out of the final Inheritance tax calc - subject to certain limits and conditions - think there is also a sliding scale bit if the done dies sometime during those 7 years ...
If the funds come from a bank or building society then they have to report transactions over a certain value, so the tax office already know. They can also request bank account statements if they think people are up to no good. You know how the HMRC like to go after smaller fish rather than the larger corporations! One way to get round it is to make smaller regular withdrawals, say £300 a week and stick the cash under the bed. It’s hard not to prove that’s not general living costs and, as in your case, your old fella can spend his own money on whatever he wants.
There is no legal requirement to notify HMRC of a PET ... see my last post. Also very unlikely that HMRC are monitoring individual bank / building society transactions - they just don't have the time / resource.
What about say it saf’s old man bought him a Porsche or something like that ? Is that considered a taxable gift ?
Your last paragraph. I was trying to think yesterday how to best word that, but couldn't think so didn't bother. It's a good bit of advice, even if people are not in a situation such as Saf's, I always believe in making cash withdrawels from a machine at some point each month, then what I do with it is my business. You can still use it in supermarkets (which is a large chunk of peoples outgoings) and pubs, I also find it encourages me to go out and do stuff, rather than sitting on the internet being lazy - go to the shops and look for what I need. I always bin my receipts as well, unless it's something such as a high value item.
my misses used to do the investigations into some of the high end earners in the uk……she could spend months investigating clear fraud and tax avoidance only to be told later they are dropping said investigation no fking 7 year checks there…
i do withdraw a lot of cash quite regularly but thats because i give it to my greedy mum and a bit to my step dad. See her around once a month
Just on a job and went outside for a ***, locked myself out and no ones in all day. But i got back in so panic over
Was your missus in the SFO? - tax fraud wouldn't normally be around IHT ... more likely the sheltering / avoiding income or corporation tax - indeed many 'schemes' have a designated HMRC number that requires inclusion in a tax return if you / a company has implemented them ...
