Can someone give someone else a large sun of money without tax implications?

Apart from what you have already posted there are no restrictions to what your father can do with his money (He isn't about to be declared bankrupt is he?). You and your other family members may be asked by your bank the reason why you are paying in a particular sum if it is way out of line with your normal transaction pattern.(part of money laundering guidelines). Eric

How did he come into this money. It may be possible to change the way the money is distributed by the source to avoid this problem.

The bank will tell the taxman. You haven't done anything that the tax man needs to know about, but the bank doesn't know that. You need to keep the evidence of where the money came from, just in case.

tim

In message , snipped-for-privacy@yahoo.co.uk writes

Yes, thats right. Also, if he is giving away any investments that he received, as opposed to cash, then if those investments have increased in value since the date of death of the legator, then CGT may come into it, You could get the will varied by deed of vaiation so that the intended beneficiaries of his gifts become beneficiaries of the estate so as to avoid this. A will can be changed up to 2 years after dath so long as all beneficiaries agree.

ONly as above

Not unless he decides to put some dish into a trust.

Not about the gifts.

In message , "tim(yet another new home)" writes

Why would they do that?

But that doesnt mean they would tell the tax man about the gift. They will tell the taxman about any credit interest paid, but not about the gift.

There is no tax to pay on a gift unless the giver dies within 7 years when, as you have pointed out, there might be inheritance tax to pay. One possibility is that you vary (legally alter) the will that your father inherited the money from. You could get it varied so that the family members inherit the money directly instead of being given it as gifts. This removes the risk of it being caught again for IHT if you father dies within 7 years. You have, I think, 2 years to do this in. if the sum is large it might be worth looking in to.

One other legal implication of him giving away large sums is if he is also claiming benefits or is living in council care, or if this is about to happen. They might try to recover the money from you.

Robert

The OP said his father had "come into" money. This doesn't necessarily mean he inherited it, though of course he could have. He could also have had a win on the lottery, or premium bonds, or at Ascot.

While it is true that you can vary the will in the case of an inheritance, what equivalent action can be taken in the case of a win? Could a syndicate be engineered retrospectively? I don't think it's possible to own premium bonds on someone else's behalf, but the other two examples might be OK.

Naive is a word that springs to mind.

In message , Stickems. writes

For you yes. For me the word is "knowledge".

Can you answer my questions as to why the bank would advise HMR&C about a transfer of capital?

I thought that banks(and lots of other people) now had to report any credit of more than 15,000 Euro (I assumed that this was the sort of sum involved for someone to be worried about IHT).

Perhaps taxman is not the person it is reported to, but isn't it reported to some department of HMG.

tim

In message , "tim(yet another new home)" writes

Thats the point that I think Mr Stickems has missed. Banks only report credit interest to HMR&C. Money Laundering rules require reporting too, but not to HMR&C.

For the price of a deed to cover the changing of the will (probably in the region of 200GBP) one can purchase a fair amount of life assurance that might cover the IHT payment. (Obviously it depends on the age and health of the insured).