Cash gift from (which) relative?

JustWilliam

Is it O'k to receive a fairly large cash gift from my first cousin who is resident in the States without incurring tax? I understand from reading threads here (where the donor is usually a parent) that the gift is not classed as income. How does this work with the revenue, do I have to report it to them upon receipt or at the end of the tax year?

ceeforcat

You have received a gift - there is no tax due on the recipient, regardless from whom it is received.

JustWilliam

Good! Thank you.

tyllwyd

But your cousin should check whether there are any tax implications for him in the US. Also receiving a large sum of cash might trigger money laundering questions from your bank.

dzug1

The tax implication in the US is that it counts towards a lifetime gift allowance for your cousin. No implications for you

JustWilliam

tyllwyd wrote: »

But your cousin should check whether there are any tax implications for him in the US. Also receiving a large sum of cash might trigger money laundering questions from your bank.

Thanks. It's not a huge amount and he has looked into things at his end. The US. have an annual Gift allowance of $13,000 give to any one person. Go over in a year and it then is deducted from the $5000,000 lifetime allowance.