Gifts out of Income - use of surplus income from earlier years

[Bish (Richard C. Bishop)]

Hi Wayne,

Discussed here.

Gifts out of income - state pension deferral lump sum

I have a client who deferred his SP from 31/08/2009 to 10/04/2016 and elected to receive a lump sum. The net amount of £27,908.59 was credited to his account 24/08/16 and he subsequently gifted £9,000 to each of his 3 children on 22/11/2016. He deems these as gifts out of surplus income on the basis 'Since it had been taxed as income I assumed that the gifts could be considered as gifts out of excess income. It was certainly income and it was certainly excess income compared to my normal inco…

Richard Bishop
PFEP