Tax on gifts to friends?

grahamm

If Person A gives Person B a substantial gift (eg £1000 or more) but they're not related or married/ in a Civil Partnership etc, does that count as taxable income for Person B?

Would they need to declare it? Also would Person A have any tax problems because of this?

Any information would be welcome.

fengirl_2

Not taxable, there is no gift tax in the UK.
if person A gives away more than £3000 in any tax year and dies within 7 years of making the gift, then the gift would form part of their estate for Inheritance Tax purposes and the executors may have to pay tax on it.

grahamm

Thanks for that