Regular monthly allowance to support adult children, taxable?

As a parent who has been providing regular living allowance to my son when he is in University, he will be getting his first job and becomes a tax payer. I would like to continue supporting him with the same regular living allowance for a few years. What is the tax liability to myself and him if any? Does this classify as Cash Gift which will have the £3,000.00 tax free limit, and subject to inheritance tax if exceed? M

Hi,

Cash gifts in pounds sterling are not taxable. Depending on the amount of the gift, you may need to consider Inheritance Tax implications .

Rules on giving gifts

Inheritance Tax: general enquiries

You may also want to review the guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.