money as a gift

star125

We were given £50,000 as a gift last year. This money went into our current account but then days later it was used to pay a lump sum off our mortgage. Should we have paid tax on this?
How much can you be given before you need to declare it - or is this how it works??

Lokolo

No you do not pay tax as such on it.

If the money came from someone that dies in the next 7 years however, there maybe Inheritence Tax due on it depending on the persons estate.

star125

Thanks for your reply. Feel a lot less worried about it now. Thought I might owe thousands...

patman99

From memory, I think Inheritance Tax comes in to force for amounts over £12,000. I'm not sure whether is accumulative (I.E. If you are gifted £10,000 in January & then another £10,000 in July, it gets counted as £20,000 for the purposes of IH), Or whether it is counted as 2 individual amounts though.

opinions4u

star125 wrote: »

We were given £50,000 as a gift last year. This money went into our current account but then days later it was used to pay a lump sum off our mortgage. Should we have paid tax on this?

No.

How much can you be given before you need to declare it - or is this how it works??

It doesn't need to be declared by you.

If the person making the gift dies within 7 years then a tax liability falls on the estate of the deceased.

Here's a linky.

patman99 wrote: »

From memory, I think Inheritance Tax comes in to force for amounts over £12,000. I'm not sure whether is accumulative (I.E. If you are gifted £10,000 in January & then another £10,000 in July, it gets counted as £20,000 for the purposes of IH), Or whether it is counted as 2 individual amounts though.

I think you should read the link above. These numbers are nothing to do with Inheritance Tax.