We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Giving money tax free as a gift?

Hi folks,
To cut a long story short - someone who gave me £3000 at the beginning of March this year would like to give me some more money. It's nothing dodgy - I'm a recently qualified student and it's simply that they have the money and I don't! But I know there's a limit to how much can be given without worrying about tax; I also presume there's some kind of time consideration to factor in (I'm hoping that it works on tax years, because I'm presuming that means because it was before April we're in a new tax year...?)

Is anyone able to tell me how this this works, i.e. if they are able to give me any more money and if so how much, without getting taxed on it.

Thanks!

Comments

  • glider3560
    glider3560 Posts: 4,115 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    All gifts are tax free.

    The only problem would come if they died in the next 7 years, then inheritance tax may become due on the gift.
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    But you wouldn't be liable for the IHT - it would be the estate of the donor. Your benefactor needs to take professional advice.
    £705,000 raised by client groups in the past 18 mths :beer:
  • dzug1
    dzug1 Posts: 13,535 Forumite
    10,000 Posts Combo Breaker
    If it's £3000 it's within the IHT exemptions anyway - as long as they haven't been giving similar gifts to someone else as well.
  • Maruka
    Maruka Posts: 18 Forumite
    Cheers folks - there's no concern about inheritance task (I hope!) because the donor is young, fit and healthy!
  • dzug1
    dzug1 Posts: 13,535 Forumite
    10,000 Posts Combo Breaker
    Maruka wrote: »
    Cheers folks - there's no concern about inheritance task (I hope!) because the donor is young, fit and healthy!

    Road traffic accident? You can't predict that
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.5K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.4K Work, Benefits & Business
  • 604.2K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.