Depositing money in bank - inland revenue??

LeeSouthEast

A gift is a gift. The subsequent use of it is irrelevant. You don't pay tax on gifts.

BlackBag

Would a bank report to the Inland Revenue if the cheque came from a business account? I'm looking to sell on a van and have received an offer from a local business, and they want to give me a cheque from their business account. I've never cashed a large business cheque before, and wasn't sure if that would be flagged up or not.

msgnomey

My DD did similar and loaned us £20k to pay off our debts and there were no complications!

withnell

LeeSouthEast wrote: »

A gift is a gift. The subsequent use of it is irrelevant. You don't pay tax on gifts.

But you can be liable for inheritance tax if the giver dies within 7 years of the gifting

jonesMUFCforever

I think OP is confusing things here.
It is interest (credit) that is reported to HMRC not large credits - although if the bank suspects money laundering they may investigate you which might involve the taxman.

dzug1

Banks have to report large credits (particularly cash) to the money laundering authorities (not HMRC). The limit is not published - and probably varies from bank to bank anyway. If they have reasons to be suspicious they have to do it for any amount. They do not have to tell you they are doing this - indeed if they are doing it because they are suspicious they are not allowed to tell you.

When you deposit it you may be asked (possibly just in the course of conversation rather than a direct question) where you got it from. If you get all uppity and refuse to answer they will probably report it anyway. Not necessarily a disaster for you - but you'll be on file and if you appear in numerous 'incidents' it will trigger an investigation of your affairs.

pelirocco

I think its more likely to be cash deposits that raise a red flag ,I was told the the figure is £4k

jonesMUFCforever

pelirocco wrote: »

I think its more likely to be cash deposits that raise a red flag ,I was told the the figure is £4k

No any deposit whether it be cash or cheque may be checked with no upper or lower limit.
If it is suspicious to the person taking the credit it may be passed on to the money laundering dept. of the bank to have a look.

Even small deposits of £20 can be suspicious!

(Person unemployed looked at their account - dozens of small credits from all over the country and withdrawn just as quickly - could be a Ebayer I hear you say - Could be says I because we do not get to hear any feedback on any reports made - it is only when it appears on tv and newspapers that we find out if we were involved or not)

Extant

dzug1 wrote: »

Banks have to report large credits (particularly cash) to the money laundering authorities (not HMRC). The limit is not published - and probably varies from bank to bank anyway. If they have reasons to be suspicious they have to do it for any amount. They do not have to tell you they are doing this - indeed if they are doing it because they are suspicious they are not allowed to tell you.

When you deposit it you may be asked (possibly just in the course of conversation rather than a direct question) where you got it from. If you get all uppity and refuse to answer they will probably report it anyway. Not necessarily a disaster for you - but you'll be on file and if you appear in numerous 'incidents' it will trigger an investigation of your affairs.

For anyone wondering, this is absolute rubbish.

withnell

Always think its stupid when they ask you to put "source of funds" on an application form - you're hardly going to say "Other: from selling drugs" are you?