Giving a £20000 cash gift

trishg82

Hi first timer here hoping someone can help. Apologies in advance because I couldn't find a board i thought fitting but saw IHT related threads about giving away cash.

I have no query or regard for IHT but the only info I can find on giving away cash always refers to it.

I recently won a nice some of money not enough to give up work but enough to take away financial worry. I want to give £20000 to my best friend.

No fiddles, no benefits we both have similar lifestyles..... early 30's living with partner, I have a child she does not. Our annual household income is around 36k and we get £40 per month child tax credit. I'll ofc complete any savings fields accurately on my forms although may also now be comfortable enough not to care and no longer claim to save the paperwork and renewal meither.

Things have been tight for such a long time and as I say my best friend is in a similar predicament.

I just want to treat her give her some cash to fritter away or invest if she wishes, i've banked half and am halving what is left with her. So my 20 will be having a bloody good holiday because we haven't made it abroad in 4 years, a conservatory and new kitchen, seen one I like for 4k from ikea

My questions are do either of us need to declare giving or receiving and who to? eg HMRC should there be a certain form I request?

Many Thanks in advance.
Trish

John_Pierpoint

It might make sense to pay the gift in (say) 4 payments to avoid any queries from the money laundering regulations.
If your friend is receiving benefits the extra capital or currently low income it will generate, needs to be reported.

mjm3346

My questions are do either of us need to declare giving or receiving and who to? eg HMRC should there be a certain form I request?

Short answer No, there is no tax to pay on the giving or receiving.

IHT, means tested benefits etc are something else but no income tax to pay. (congratulations on your win)

CLAPTON

well done

if 20k is half of a half then you will be left with 60k
if you use 20k for holidays kitchen etc that leaves 40k
you don't say your age but lets say 30.. you will probably live for another 50 years ..so your 40k will be spread over 50 year ; less that 100 a year..nice but not such a lot really so think carefully about how you use it.

apart from IHT there is no tax consideration which is why you never hear of any issues;
I've no idea about benefits but many are restricted if you have a lot of cash

trishg82

Guys thank you all for your replies much appreciated.

T x