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Gift Tax (Siblings)
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# 1
I-Dont-Do-Debt
Old 16-02-2009, 7:58 PM
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Default Gift Tax (Siblings)

Sorry if this has been posted already (I did search).

How much may one give as a Tax Free Gift to a sibling?
I've read 3K per annum!?

I wish I could cross post to the mortgage threads group but ...

Is any Tax payable when a Property is sold? Property had a mortgage for 15 of 25 years then paid outright at year 15.
Capital Gains Tax? based on the premise any gains would not be re-invested in another property i.e. rent a new property rather than buy.

Ta
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# 2
dzug1
Old 16-02-2009, 8:24 PM
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You can give as much as you like to anyone you like in the UK - there is no gift tax. The 3K relates to the possibility (and only the possibility) of inheritance tax at a future date.

Assuming you lived in the house and it was your only property - no CGT. Doesn't matter what you do with the proceeds
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# 3
I-Dont-Do-Debt
Old 16-02-2009, 8:50 PM
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Wonderful

So any gift in cash money is not liable to any form of tax?
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# 4
dzug1
Old 16-02-2009, 9:05 PM
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Quote:
Originally Posted by I-Dont-Do-Debt View Post
Wonderful

So any gift in cash money is not liable to any form of tax?

Correct.

The only possible tax is inheritance tax if the donor does not survive 7 years AND leaves an estate (including the gift) large enough to pay it.
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# 5
kernow1
Old 30-08-2009, 9:19 PM
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Hello,
I was just going to post a question when I saw this thread and it was very similar...
I didn't set out to question the knowledge of dzug1 but surely this can't be correct? Any amount of money can be given from anyone to anyone and it is not subject to capital gains or income tax? Can anyone verify or point me to a link?
I've search thru HMRC site and all these types of questions seem to be related to parents or grandparents giving their children or grandchildren money rather than siblings, or indeed unrelated people.
Thanks for the help
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# 6
fengirl
Old 30-08-2009, 9:24 PM
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dzug is correct - there is no gift tax in the UK. There is no link to this because the tax does not exist.
Anyone can give anyone else any amount of money and it is not subject to income tax or CGT. Income tax is payable on earnings and investment income. CGT is payable on the gain made on the sale of assets.
IHT is not payable on gifts, but if the donor dies within 7 years of making the gift, the gift may form part of the donor's estate for IHT purposes and the executors may have to pay IHT on the gift.
No tax is ever paid by the donee.
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# 7
James, Oxford
Old 31-08-2009, 10:16 AM
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There is a point which I don't think this thread makes clear - and that is that some gifts are EXEMPT from inheritance tax whereas some gifts are POTENTIALLY EXEMPT.

Certain gifts can be made which are completely exempt and are unaffected by whether the donor survives etc. The main exempt gift is one which is covered by the donor's annual allowance of 3,000. The relationship of the recipient to the donor is irrelevant.

It is possible to use the previous year's allowance if that is unused, so a gift of 6,000 can be made completely exempt from inheritance tax. If the gift was made either side of midnight on the 5/6 April 2010 then a total gift of 9,000 could be made which is completely free of inheritance tax.
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# 8
ham898
Old 07-02-2010, 6:00 AM
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Default Income tax on a gift of money recieved

Pleae would someone be kind enough to let me know whether I will be charged income tax on money I recieve from my mother. I am clear that there is no gift tax in the Uk but I am not clear about income tax.

Please Help!

Kind Regards.

H
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# 9
noh
Old 07-02-2010, 8:55 AM
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Quote:
Originally Posted by ham898 View Post
Pleae would someone be kind enough to let me know whether I will be charged income tax on money I recieve from my mother. I am clear that there is no gift tax in the Uk but I am not clear about income tax.

Please Help!

Kind Regards.

H
No.
A gift is not income so therefore is not subject to income tax.
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# 10
mc2705
Old 08-02-2010, 9:47 AM
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I never knew any of this! Excellent news (for me) if one of my family ever win the lottery and fancy giving me a couple of million (one can dream!).
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# 11
trebor58
Old 28-08-2010, 10:10 PM
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Default brother gave me money to invest in business

is this money taxable as i spent it all under the condition I would give him a gift from our parents inheritance, they thankfully have not died yet but my brother would like some money back now, which is in the firm. But he is on benefit and if I give him a gift he will loose his benefits
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# 12
Mahmood Reza
Old 29-08-2010, 10:50 AM
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Is the money a gift or a loan? There is no immediate tax liability on the 'gift' on you or your brother, to see how the benefits office will treat this gift I imagine would be dependant on the type of benefit he receives & the amounts involved - direct.gov.uk should provide some extra help
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