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Is parents' support to a full-time student child a taxable income?
aristote33
Posts: 125 Forumite
in Cutting tax
Hello all,
The situation is as follows:
- I'm a full-time student;
- I live away from my parents;
- I've been working part-time while being a full-time student, being an employee with PAYE but without ever reaching the maximum of personal allowance;
- my parents would like to give me some money to support me as a full-time student so that I could save the money I earn with working part-time.
I looked on Direct.gov.uk and on HMRC website to see if I could find anything about that situation but without luck. (The only thing I found which sounds a bit similar is a tax-exempt gift, but then, again, it doesn't say if the received tax-exempt gift - for the donator - is a taxable income for the receiver of the gift...)
The question is:
Is parent support to a full-time student child a taxable income - for the child studying full-time?
In other words, if I earned just below the personal allowance threshold in the tax year, and my parents gave me money on top of that, would I have to fill in a self assessment return to declare that extra money above the personal allowance threshold and therefore would have to pay 20% on it?
If there are tax specialists, and/or parents and/or students in the same situation on here, you might be able to give me some information on the matter.
Thanks a lot in advance for your feedback.
William
PS: I suppose this post could fit better in the Students' section, but there must be more MSEs looking at posts in the Tax section, and since my question is about tax, I'm posting in here.
The situation is as follows:
- I'm a full-time student;
- I live away from my parents;
- I've been working part-time while being a full-time student, being an employee with PAYE but without ever reaching the maximum of personal allowance;
- my parents would like to give me some money to support me as a full-time student so that I could save the money I earn with working part-time.
I looked on Direct.gov.uk and on HMRC website to see if I could find anything about that situation but without luck. (The only thing I found which sounds a bit similar is a tax-exempt gift, but then, again, it doesn't say if the received tax-exempt gift - for the donator - is a taxable income for the receiver of the gift...)
The question is:
Is parent support to a full-time student child a taxable income - for the child studying full-time?
In other words, if I earned just below the personal allowance threshold in the tax year, and my parents gave me money on top of that, would I have to fill in a self assessment return to declare that extra money above the personal allowance threshold and therefore would have to pay 20% on it?
If there are tax specialists, and/or parents and/or students in the same situation on here, you might be able to give me some information on the matter.
Thanks a lot in advance for your feedback.
William
PS: I suppose this post could fit better in the Students' section, but there must be more MSEs looking at posts in the Tax section, and since my question is about tax, I'm posting in here.
0
Comments
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No, support of a child is not taxable income, nor is it tax deductable.£705,000 raised by client groups in the past 18 mths :beer:0
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We do not have a gift tax in the UK, so your parent can give you whatever they like (well anyone can give anyone else whatever they like) without either paying tax. You donot have to declare it anywhere.
The is a potential issue about Inheritance Tax if your parents die within seven years: in that if their estate plus gifts made other the last 7 years exceed the then IH allowance then IH tax will be liable... but if they dont give any money away the tax would still be liable). There are various allowances associated with this (e.g. people can give away 3,000 without it being a potentail IH issue which sometime confuses people about general gift taxes).0 -
There won't be any inheritance tax issues in this case, as maintenance/support payments generally do not count as a transfer for IHT purposes, so long as they are made from income, rather than capital.0
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Nice try though!0
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We do not have a gift tax in the UK, so your parent can give you whatever they like (well anyone can give anyone else whatever they like) without either paying tax. You donot been have to declare it anywhere.
Thank you all for the valuable information.
I'm a bit confused about the last bit though.
1. Parents' support is not taxable.
2. Then, do I have to declare receiving this parents' support to HMRC? If yes, is there a standard form to do the declaration or a plain letter will do?
Thank you,
Will0 -
aristote33 wrote: »Originally Posted by CLAPTON
We do not have a gift tax in the UK, so your parent can give you whatever they like (well anyone can give anyone else whatever they like) without either paying tax. You donot ___ have to declare it anywhere.
Thank you all for the valuable information.
I'm a bit confused about the last bit though.
1. Parents' support is not taxable.
2. Then, do I have to declare receiving this parents' support to HMRC? If yes, is there a standard form to do the declaration or a plain letter will do?
Thank you,
Will
I think the answer's in there somewhere, just an extra unnecessary word?0 -
Thank you Real.. I have indeed a superfluous word in there... I have now edited it out to confuse things even further
But for clarity
Ignoring IHT considerations
Anyone, including parents, can give gifts of any size to anyone else (including their own children), without paying any tax and without declaring it to the HMRC.
Anyone can receive gifts without paying any tax and without declaring it to the HMRC.0 -
Thank you all again.
0 -
This is certainly the case for cash gifts, but for property, shares, moveable goods etc, the giver may be liable for capital gains tax, depending on the circumstances0
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