If you do benefit from the gift, it is a gift with reservation of benefit. This means that while you’ve gifted the asset away, you’ve continued to benefit from it in some form. This can potentially be classed as remittance of the income, and the gift can be looked at and reassessed in the future. This means that it is very important that gifts are real gifts that are not going to be benefitted from. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party. You need to ideally have evidence on file that this is a formal gift.
Category: General Tax Queries
