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Who gives and receives substantial inter vivos financial transfers in Britain?

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  • Bee Boileau
  • David Sturrock

Abstract

We document new stylised facts about substantial gifts and loans made in Great Britain. The vast majority of gifts and loans are made from parents to their adult children, and we find substantive differences in receiving by ethnicity, region and gender. Gifts are only weakly related to individuals' economic resources once their parents' socio‐economic status is accounted for, but loans are made more frequently to those with lower wealth. Transfers modestly increase inequalities in total inflows (income plus transfers) over early adulthood. Over an eight‐year period, cumulative transfers received are worth 0.5 per cent of income for those in the bottom income fifth compared to 2.6 per cent of income for the top fifth. Over half of the value of gifts is given by the wealthiest fifth of individuals and transfers increase inequalities between those with parents of higher and lower socio‐economic status. However, transfers decrease relative inequalities in wealth, being largest as a share of wealth for those at the bottom of the wealth distribution.

Suggested Citation

  • Bee Boileau & David Sturrock, 2025. "Who gives and receives substantial inter vivos financial transfers in Britain?," Fiscal Studies, John Wiley & Sons, vol. 46(2), pages 261-280, June.
    • Handle: RePEc:wly:fistud:v:46:y:2025:i:2:p:261-280
    DOI: 10.1111/1475-5890.12403
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    References listed on IDEAS

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