• This topic has 15 replies, 12 voices, and was last updated 6 years ago by Klunk.
Viewing 16 posts - 1 through 16 (of 16 total)
  • is receiving a monetary gift taxable?
  • granny_ring
    Full Member

    Probably a stupid question but if you were to receive a 6.5k cheque as a gift do you have to declare it?
    TIA

    tomhoward
    Full Member

    Only if the person who gives it to you dies in the next 7 years, and qualifies for inheritance tax iirc

    theotherjonv
    Full Member

    not as far as i know; only situation where it could be is if it’s gifting to avoid inheritance tax and they don’t last I think it’s 7 years afterwards.

    https://www.moneyadviceservice.org.uk/en/articles/gifts-and-exemptions-from-inheritance-tax

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    nickc
    Full Member

    I think the limit is £3K…

    might want to check with CAB

    footflaps
    Full Member
    madhouse
    Full Member

    I guess it’d depend on who the gift was from!

    granny_ring
    Full Member

    Cheers.
    So looking at the links, if a persons estate is less than 325k there is no inheritance tax to pay and if it was higher than that then the tax on the ‘gift’is pro-rata for up 7 years if the person dies?

    granny_ring
    Full Member

    Gift would be from a parent.

    thecaptain
    Free Member

    The £3000 exemption is for the giver and can be carried forward one year meaning a single gift of £6000 can be immediately and unconditionally exempt from inheritance tax. Beyond that, keep records and keep them in good health tho in practice I bet no-one would catch such a small transgression.

    RichPenny
    Free Member

    The way I’ve read that, if less than £325k is given away then no inheritance tax is payable?

    kcal
    Full Member

    depends what the estate (plus any PETs added back in, pro rata) would be at time of death – rather than what’s given away..

    Speeder
    Full Member

    Talking hypothetically what about gifts to friends if you won the lottery and wanted to spread the love a little? It’s not inheritance and it’s not income.

    I know I could google it but well . . . . this is STW. ;o)

    I caved and looked it up inheritance tax rules apply whatever it seems . .

    granny_ring
    Full Member

    Speeder, I am your new best friend. Hi 😀

    thecaptain
    Free Member

    Speeder, it is indeed inheritance (for the recipients), just as much as if you’d earnt it.

    FuzzyWuzzy
    Full Member

    As long as Speeder doesn’t die within the 7 years though it’s not classed as part of his estate so isn’t subject to inheritance tax

    Klunk
    Free Member

    Can’t you put in trust to get round the 7 years thing (if you think you’re going to wrap the porsche round a tree), obviously they can’t spend it for what ever the period is.

Viewing 16 posts - 1 through 16 (of 16 total)

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