Receiving money as a gift by parent?

Jamessurfing

Hi there,
What are the rules for receiving money from a parent to give to me at this point in my life rather than after their death?

Ie if they give me say £15 to put into savings, with view to use as a deposit for a house one day.

Do I get taxed on that? Will they get taxed?
If so is there a way to avoid tax ie trust funds etc?
Any pointers/links/advice would be good thanks.

Many thanks.

Scout

AFAIK, there is no tax implication, other than what you pay normally on any interest, if your parents survive the gift for 7 years. If they die before then, it depends on how long you have had the money as to what amount is brought back into their estate.

I received a significant amount from my parents for a similar thing and when one of my parents died, it was all declared for probate but as most was outside the 7 years, there was very little tax to pay, as far as I am aware (it was a bit complicated as between myself and my siblings, some of the money had been "gifted" within the 7 years, but we just let the solicitors deal with it all)

As I still have a surviving parent, this would have had some bearing as I think it depended whose bank account the original gift came from as that from the surviving parent had to be taken out of the equation.

Jamessurfing

Yes this is similar,

So if you get an amount of money, given to you, you dont declare it as income?!?!!?!

ie 15,000 is not taxed at 22percent as its not income tax...?

Just a gift or something, that has a different tax category? I will have to find this out from the tax man and a financial advisor too.

So if the giftor dies within 7 years is it classed as inheritance?
Inheritance tax threshold is more than my mother estate anyway.

Thanks.

Scout

James - I have pm'd you

dzug1

James, there is no gift tax in the UK, only potential inheritance tax.