What tax liabilities are there if my Dad gives me £5k?

indierocker85

Hi

My Dad is on permanent sick but only gets £70 a week incapacity benefit and that is all. I have been helping him matched bet, I owed him some money, which is now repayed, he said we could split whatever else was made. If he gave me £5k what is best way for him to give me it? Avoiding suspicion from my bank and also avoiding any tax complications?

Regards,
Indierocker85

Energize

There is no tax on gifts or gambling so there are no tax implications here.

Tallymanjohn

There is the slight caveat that if your father dies within 7 years the gift will become taxable:

http://www.hmrc.gov.uk/CTO/customerguide/page6.htm

sdooley

Tallyman, but there's no inheritance tax on 5K!

Energize

Yeah he has this and last years £3k allowance, so upto £6k this tax year is exempt from IHT.