If i claim back overpaid tax having received "gifts" of £30k

dixie_dean_2

Hi

When my girlfriend and I bought our house our families helped out quite a lot. My OH received about £30k from various members of her family. I have no idea how this all works but we're worried that if she now claims back overpaid tax (as she hs become a student) they might look into this and not sure if this would be bad for us or her family. Any ideas or thoughts greatly appreciated.

Cheers in advance.

jennifernil

Gifts are not income so she is not liable to tax on them, only on any interest earned if she has invested the money.
Depending on the size of individual gifts there could be Inheritance Tax due if the giver died, but this would come out of the estate and there are many exemptions on size of gift and time elapsed etc. I do not think you need worry about this.

Mikeyorks

HMRC will be pleased to refund any overpaid tax. The first sentence of post #2 is wholly correct.

dixie_dean_2

Hi

Thanks. I was aware she wouldnt be taxed on it but was concerned about inheritance tax. So to clarify, anyone can give anyone any amount of money and its only if the "giver" died within a certain time frame that it would become an issue?

Thanks again.

Robert_Sterling

It might become an issue if a donor died within 7 years.

Bossyboots

This thread http://forums.moneysavingexpert.com/showthread.html?t=293512 is about the law on gifting and has a link to the details of facts and figures.