The Daily Telegraph has an article in claiming that grandparents are on average giving £3,000 a year to their children to meet their every day living expenses.
Said "everyday" living expenses include weddings, new cars and mortgages.
Undoubtedly many people do benefit from financial help from their parents or grandparents. However, the figure quoted here as the average makes me think something else is going on.
It could well be that these are well off grandparents who are reducing their estate's liability to Inheritance Tax Everyone has an annual gift exemption worth £3,000. In other words, a gift of £3,000 per year can be made and reduce the taxable value of the estate.
Is this just a coincidence, or has the survey's author JP Morgan asked their question mainly to the more well-heeled?
Accountancy Edge are Chartered Accountants based in Bideford, North Devon. They help business owners earn more, keep more and enjoy their businesses more.
ICAEW Chartered Accountants based in Bideford, North Devon. Working together with business owners to improve their business and their world.
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