Gifting money within the UK

Hello, I would like to transfer £24k to a friend (my ex partner) who helped my out financially over the years many times. It’s basically money that I owe her. I read online that Hmrc only allows 3k to be gifted tax free per year. This confused and surprised me. My question is- can I simply transfer this money to her without a. Having to declare it to Hmrc or b. Her having to declare it (aside from any interest it might earn) Thanks in advance.

Hi- does anyone have any thoughts/ advice on this ? Thanks

Hi,

There is no Income Tax liablity arising from the gift of cash from one person to another.  

If you are a UK tax resident, then you may need to consider Inheritance tax implications. Gifts below £3000, can be ignored for Inheritance Tax purposes, gift above this amount will need to be included in your estate for Inheritance Tax, should you pass away within 7 years of making the gift. You can see more information on Inheritance Tax here:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.

Thanks for this information, admin 19. Could you clarify the second part: Are inheritance tax implications are only relevant concerning family and spouse? Between acquaintances is this of no concern? thanks again

Hi
Please note we do not deal with Inheritance Tax
queries on this forum.  Please contact the
Inheritance Tax Helpline on 0300 123 1072. 
Thank you.