Andrew Brunskill

Apologies as I may have not been clear in my question. I am no talking about tax relief . The taxation I was thinking about is Inheritance tax. I am in my mid 70s so the possibility of “falling off my perch” in the next few years is increasing! I wanted to know if reimbursing a travel expense to visit me to a daughter or son in law for example would count as a gift subject to inheritance tax if I did it in within a number of years of my death. Travel from Australia or the US is well over £250 per ticket now! I have two married daughters and two grandchildren. Would I be able to reimburse their tickets to the UK from US or Australia ? Does it make a make a difference if I give them the tickets vs pay them back for them buying the tickets? Does the "gift exemption" refer to cash payments only :- not tickets? Thanks for your opinion. PS The rules I had read seem to the advice given below:- Annual exemption for gifts You can gift up to £3,000 per tax year tax free. This is the total amount gifted, not per person. So you would need to spread this around your family if you wanted to gift money to multiple family members. A married couple or those in a civil partnership will have an annual exemption of £3,000 each. If you did not use your annual exemption last tax year then you can carry it forward to this tax year and gift up to £6,000. Small gift allowance You are also able to gift up to £250 to as many family members as you want tax free. However you can’t do this if you have already used some or all of the annual gift exemption on the same person.

Hi, we are US and UK citizens and presently live in the UK . We want our children to visit us from the US. We want to pay for their travel costs. (1) If we pay for these is this a taxable gift? (2) If we reimburse them from our US account for travel costs they have incurred is this a taxable gift? (3) just for interest if we gave them a car would that have been a taxable gift?! Thanks, it would be helpful to get a prompt reply as we hope they come this summer and there is sunshine here! ABjaber

Hi. I am a US- UK joint citizen presently living in the UK. I have money in a US Health Savings Account (“HSA”) which I could use under US law to pay for private health costs while living in the UK. If I did this within the US the withdrawals would be US tax free - this is what a HSA is for. However is it true that if I did it while a UK resident it would be liable for UK tax (as if income)? I think this issue may be important to a significant number of US citizens living in the UK who do have HSA s. Thank you for your attention and Happy New Year 2024!