Gifting
If your children are on their own, you may want to help them out financially. Making gifts during your lifetime is often a way to show your generosity while you're still living and to help avoid onerous inheritance tax. In the U.K., financial gifts are exempt from inheritance tax if made seven years before you die. You can also give your children either £3,000 per tax year or £6,000 if you did not gift a similar amount the tax year before, without the risk of paying inheritance tax on the gift. You may also make outright gifts of up to £250 to any person in any tax year, make further gifts in consideration of marriage and make gifts forming part of normal expenditure and made out of income. You may wish to contact a tax adviser to find out how you can take advantage of the gifting provisions under the tax laws. In India, gifts given by a blood relative are not subject to tax, nor are gifts made at the time of marriage.
