Is it taxable income if my parents pay a bill?

bonbonjam

Hello, my parents have been helping me out finiancially while I save for a deposit by paying my council tax. However I am not sure if this counts as taxable income and whether I therefore need to include it on an SA form? Thanks for any help.

Mikeyorks

No - it's simply a gift. And there's no UK tax on that.

bonbonjam

Thanks very much for the quick reply...actually I was just in the process of adding that they kindly already gift me £3000 yearly as per IHT allows. I wonder if this makes a difference? Thanks again

Mikeyorks

No difference. In the event they would ultimately be over the IHT threshold in due course ..... any add back would be to their estate. No liability to you.

jennifernil

In addition to the £3k each person can give away each year, do gifts out of income come in addition?

Mikeyorks

jennifernil wrote: »

In addition to the £3k each person can give away each year, do gifts out of income come in addition?

Yes - the '£3k' etc largely quoted is out of capital?

zygurat789

Mikeyorks wrote: »

Yes - the '£3k' etc largely quoted is out of capital?

Yes. So long as it does not reduce the normal standard of living. This stops you giving out of income and livuing of capital.