Tax on a received cheque

fwederick84

Another member of the family is in a position to give us a cheque for around £18000. Being a little unsure of the tax system is this liable to any form of tax as someone told me that to avoid tax only a £3000 amount can be given in any financial year.
Can anyone help

sandy_smith_2

If its a gift then theres no tax due at all except in the instance of the person giving you the gift dying within 7 years. If this does happen then this gift would be included as part of their estate and thus inheritance tax may due on this gift.

System

You wouldn't pay tax on a gift no matter how big it is though obviously any interest you made on that gift would be liable to tax.

The person making the gift has to consider their position though. You are correct with regard to the £3000 limit but that only comes into play if they pass away and any inhertiance tax due would be deducted from their estate.