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declaring gifted money
sim101_2
Posts: 5 Forumite
in Cutting tax
Hi everyone bit of a newbie around here so sorry if this is a stupid question,
I received £10,000 off my grandmother as a gift earlier this year which I invested in my (self employed) business in the form of buying a camera and vehicle, When I declare my accounts this week do I have to call the money received something specific (gift) so I am not taxed on it? or do I have to pay tax on it because I invested it in my business? Any help would be greatly appreciated sorry again if I seem like a simpleton
Ta, simon
I received £10,000 off my grandmother as a gift earlier this year which I invested in my (self employed) business in the form of buying a camera and vehicle, When I declare my accounts this week do I have to call the money received something specific (gift) so I am not taxed on it? or do I have to pay tax on it because I invested it in my business? Any help would be greatly appreciated sorry again if I seem like a simpleton
Ta, simon
0
Comments
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No tax.
No declaration needed.0 -
It will be capital introduced and not business income.£705,000 raised by client groups in the past 18 mths :beer:0
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just to add
not only do you not pay any tax on the money, but if you have spent money on capital goods, you will be able to make some deductions from your profit and so pay less tax0 -
Don't forget to keep written evidence of the gift just in case the taxman tries to tax it as business income in the absence of evidence to the contrary. Try to get a copy of the paid cheque, or ask your grandmother to sign a little ditty to supporting the gift?0
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Also is worse comes to worst and your grandmother should die within 7 years of receving the money I think it is due to have inhertience tax on it.0
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...per year free of tax considerations? “When I was a boy of fourteen, my father was so ignorant I could hardly stand to have the old man around.
But when I got to be twenty one, I was astonished at how much he had learned in seven years.”
Mark Twain0 -
just to add
not only do you not pay any tax on the money, but if you have spent money on capital goods, you will be able to make some deductions from your profit and so pay less tax
Am I right in thinking that if the capital items were bought post April 1st they will qualify for 100% writedown under the new capital allowance rules, therefore reducing profit by their full cost?0 -
if I gift gifted money say £10,000, is tax payable?"enough is a feast"...old Buddist proverb0
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Read the previous answers0
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So its the same I take it then. Just wanted to make sure that there are no time limits as you never know with our complicated tax system"enough is a feast"...old Buddist proverb0
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