News

Giving and receiving gifts is more important than ever during these times of increased uncertainty and isolation and given that it’s Valentine’s Day, surely there isn’t a more perfect time for giving to those you care about.

Gifting not only gives people a sense of value and self-worth but it is proven that giving to others can release hormones such as endorphins and oxytocin and can reduce cortisol levels, improving both our physical and mental wellbeing.

Valentine gestures can be as simple as writing a thoughtful card or can be as generous as gifting money.

One thing to remember though, is that gifting money can come with an extensive list of rules and tax consequences, so to make it easier we have highlighted the important points to consider below:

• Everyone has an annual exemption of £3,000.00 which they can gift each tax year tax-free. This can be given to one person or split between several people, and if unused can be carried forward to the next tax year, for one tax year only

• As part of the small gift allowance, you can give as many gifts up to £250.00 per person each tax year providing no other allowances have been used on the same person (Christmas and Birthday gifts are always exempt)

• If your gift is for a wedding or civil partnership, you can give up to £5,000.00 to a child, £2,500.00 to a grandchild or great-grandchild, or £1,000.00 to any other person.  This can be combined with the annual exemption to create a larger allowance

If you are unsure about the consequences of the money you are gifting and would like to discuss further, we are more than happy to help.  Please give us a call or visit us in any of our offices in Dalston, Penrith, Dumfries or Workington.