There are certain things in life that are made easier by the "nice" people you meet along the way. Thank you for your help; infact thank you for everything; I'm glad I wasn't in this alone.

The stress of moving was very much kept to a minimum with such pleasant, happy, courteous and professional people. We would be very happy to use your services again.

A thoroughly professional company.

When stating on the telephone that a letter would follow in the next post, it arrived on my doorstep the next day! Your staff were most helpful throughout.

We appreciate greatly, the helpful way in which you handled our house sale, nothing but the highest praise for your efforts both professional and client relations.

Nothing was too much trouble, matters were dealt with very promptly and without any fuss. We will definitely recommend you.

Many thanks for all your hard work. All of your efforts were truly appreciated. We only wish other agencies involved in house moving were as efficient!

"Full marks!" "This is the second time in recent years that we have used your company. We would not hesitate to use Clutton Cox in the future and would recommend your company most highly.

Excellent service. Thank you for all the time and help you made available. "The service was first class, and I will have no hesitation in recommending you to other people.

I was more than pleased with the way you dealt with my affairs and the problems encountered. I could not have asked for better service or more support.

Excellent service. Thank you for all the time and help you made available. "The service was first class, and I will have no hesitation in recommending you to other people.

I was more than pleased with the way you dealt with my affairs and the problems encountered. I could not have asked for better service or more support.

I was impressed with the way you and your staff managed to be patient, courteous and maintain an air or optimism even when difficulties arose, thank you.

Once again signed, sealed and completed without a hitch! Cheers for all your hard work.

Very pleased indeed with the service no hesitation in recommending it to others.

We found our dealings to be very efficient and helpful and would not hesitate to recommend Clutton Cox to any of our friends/relations. Many thanks for your assistance in this matter.

We were very impressed with the service we received. "All staff were very friendly and helpful. They did not tire of my constant phone calls!

I thank you for the exceptionally quick service you have provided for me. I never imagined things would all go so quickly and smoothly!" "Very much appreciated, thank you.

We were impressed with your willingness to answer our queries and clarify matters for us. Thank you very much.

We are more than pleased with the speed and efficient way our conveyancing has been handled. We will certainly use your services again and will recommend you to our friends.

We were very happy at the service we received. It was very professional and efficient.

01454 312125

Parental Gifts to Children: the Pitfalls and the Tax Implications

by Paul Hajek on

Parents often feel inclined to be generous to their children and like to set aside money for their future.

The income tax treatment of such generosity may have taken many by surprise.

It would seem logical that once the gift is made that any income arising on the gift would be treated as the income of the child. However the tax rules do not work in this way and treat the income as still belonging to the parent.

Since 1991 the tax rules have provided a trap for the unwitting parent.

The rules have a wide application and do not just apply to the more complicated trust arrangements that some may wish to arrange. They will catch all sorts of “arrangements” which can be interpreted as being a “parental settlement” including the simple transfer of cash into a deposit account for a child.

Any income on a gift under £100 will be ignored under the “de minimis“ ( to small to be significant in plain English) rule and so at current interest rates there may be nothing to worry about in many cases.

However, there is one situation which occurs quite frequently should be considered carefully: a Deed of Variation.

A Deed of Variation is often used in a situation where you may have inherited money and wish to redirect it to a minor child (i.e. one under 18)

A Deed of Variation may work well in other tax areas, but be careful in this instance; if the correct procedure is adopted, the tax rules do not work for income tax purposes.

This means that the gift is still treated as being made by the original recipient, you the parent and is therefore trapped by the tax rules

The tax rules apply in the following manner-

1.The income arising is taxable on the parent (once it exceeds the £100 threshold) at whatever rate the income would have been charged at if it had actually been their income

2. Any payments of capital will be caught as well in circumstances where there is income available to distribute.

There is also another alternative which parents often consider; a bare trust.

A Bare Trust, although not strictly treated as trusts for most tax purposes, they are nevertheless subject to the income tax rules outlined above.

However, as they have more favourable treatment for capital gains tax purposes they can be attractive provided the parent realises that the children have the right to ask for the asset; as it is strictly theirs from the outset.

As always individual circumstances change, and the above is a general guide only.

If you would like specific advice please call me on 01454 312125. I would be delighted to help