Can I Give My Son £20,000?

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Many parents consider monetary gifts to help their children onto the property ladder or pursue other goals. However, there are important factors to consider before handing over large sums like £20,000. This article will explore the key questions parents should ask when weighing up gifts to children.

What are the tax implications?

  • In the UK, small gifts up to £250 per year are exempt from inheritance tax. Above this, gifts may be taxable if you pass away within 7 years.
  • Gifts for weddings or civil partnerships up to £5,000 per donor are exempt.
  • Regular gifts from normal income are also typically exempt, provided they don’t reduce your standard of living.
  • Larger one-off gifts like £20,000 may incur inheritance tax if the 7-year rule applies. Professional advice is recommended.

Does it affect any means-tested benefits?

  • If your child receives means-tested benefits, a substantial gift could impact their entitlement or require repayment of amounts received.
  • Benefits such as Universal Credit have strict rules about financial changes that must be reported. Check with the DWP before gifting.

Will the gift achieve the intended aims?

  • Think carefully about how your child may use a large cash gift. Will it go toward housing or other goals you want to support?
  • Gifting an amount explicitly for a deposit could be tied to completion to ensure it achieves your mutual aims.

How will family dynamics be affected?

  • Singling out one child for a large gift risks upsetting siblings who receive less or nothing. Think carefully about fairness.
  • Discussing plans openly can help manage expectations and tensions.

Do you need the funds yourself?

  • Be sure you can afford to permanently part with the amount gifted without damaging your finances. Do you have sufficient savings and income remaining?


When contemplating gifting a substantial sum such as £20,000 to your child, there are various critical factors to take into account. These include tax implications, potential effects on government benefits, the dynamics within your family, and your own financial needs. To make certain that your gift aligns with your desired objectives, it is advisable to seek professional financial and legal advice. Consulting with experts ensures that all aspects and consequences are thoroughly considered. So, if you find yourself asking, “Can I Give My Son £20,000?” seeking professional guidance can help you navigate this financial decision with confidence.

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