Do we pay tax on cash gift?

savingbonds

Hi all

I am new to this forum and I need some help desparately!

My neighour bought me a massage chair in 2004. He gave me £5000 to cover for it by issuing a cheque to my name, so I cashed the cheque at my bank.

Unfortunately, he passed away sometime this year. I am not sure whether he had given out other cash gifts to anybody else on the same year. I understand his family is going through the paperwork for the inheritant tax.

Do I have to pay back the tax for this £5000 he gave me? (I meant if his family put this on their paperwork)

Thanks in advance for whoever would be able to answer my question!

00ec25

simple answer NO you do not have to pay any tax on the £5k he gave you

the real position is that if your neighbour's total estate is over the inheritance tax threshold then his estate will pay any tax if it is due.

McKneff

Hello there and welcome to the boards.

You have no need to worry, gifts to you are not taxable so you are not liable to pay anything.

If there was any tax to pay (because the person has not lived 7 years after the gift) it would be taxable from the estate of the deceased.

I'm sure more people will come along with a better explanation but that is my understanding of gifts of money (learned from these forums)

regards
Annie

savingbonds

Hi 00ec25 and McKneff

Many Many THANKS for your quick reply!! I really appreciate that!!!!

And I really find this forum is very helpful!!

McKneff

Your welcomes Savingbonds.
Just a tip, if any posters have been helpful, it etiquette to hit their 'thanks' button. Thought, as a newbie you might not know this.

Dont be a stranger -