Giving money to children

I think you will be OK as long as you don't start offering money to strange children in your local park.

Clough

You won't, not tonight nor any other night. Just give them a fiver. Lotteries are tax on people who don't understand statistics.

What about ordinary ones?

Well clearly someone will win , and this is a thread about the legality of gifts , not gambling odds.

Bitstring , from the wonderful person AlanG said

You can give it away just fine - however if you snuff it within 7 years it (or some tapered part thereof) will form part of your estate and will be liable for IHT.

Now if the children had contributed 50p each towards the £1 stake, you wouldn't have that problem. That's why lottery syndicates need to have written documentation/rules/etc.

Hint. Wink.

Not so much the legality but the problems that may arise. I understand the UK has some sort of gift tax.

Then you may like to review the trust you place in whatever sources led you to that misunderstanding.

If you have a winning number, just arrange for a joint payout with your children as a shared ticket.

Well that's one way of looking at it :)

Quite so. When he wins millions on the Lotto, we'll all think about it for him. Until then.....

As there is an age limit to gambling on the lottery, surely this would be a very stupid thing to do?(1)

Bitstring , from the wonderful person joe parkin said

Yes, but I, on the other hand, presumed no-one in their right mind would give half a million quid to anyone under about 21.

A tax maybe.........

But my tax had a rebate of 5 numbers and a bonus ball.

So stop talking s**te

In message , AlanG writes

None

Just live for 7 years. If you die within this period then the gifts will be added back to your estate for Inheritance Tax purposes although the IHT payable on that value of the gifts which exceed the threshold for IHT as at the date of your death will reduce after three years.

I suggest you enter into a syndicate agreement with your children (if they are old enough) so that they are the owners of the win form the outset.

In message , GSV Three Minds in a Can writes

It is the IHT that might fall due on that part of the gift which exceeds the threshold for IHT as at the time of death which is tapered.

In message , Smolley writes

How do you do that?

The odds of getting that are 1 in 2,330,636.

The typical payout for that is £100,000.

I regret that I do not speak Shite. You, however, appear to be fluent.

In addition to the IHT issues mentioned by others, if the money you give to your child produces more than 100 in interest, that interest is taxed as *your* income not your child's.

Yes, only immature people gamble. At 18, people are supposed to be mature. So once over 18, you should stop gambling.