Ive been given a lot of cash! what to do?

agal

What are the tax implications of a £25k gift. Is it counted as income for the recipient? Do the donors have to live for seven years to avoid inheritance tax?
Just wondering

15lsp

bristol_pilot wrote:

Buy the Audi TT. I got an "early inheritance" of £20k and spent it on a new car and the donor got a lot of pleasure seeing me enjoy the money.

Well ive gone as far as go to the Audi showroom and have a look! I like the idea of having money in the bank though. Especially since i don't own property yet.

I think learning to just say 'I'm not going to touch this money' and then carrying that out would be a far better plan than the ideas currently suggested.

I don't think i have the will power to not touch. I've never had that much money and more than my current salary so its best to lock it away. I've got too many shoes and handbags as it is

What are the tax implications of a £25k gift. Is it counted as income for the recipient? Do the donors have to live for seven years to avoid inheritance tax?
Just wondering

Oh...not more tax :eek:

Kilty_2

If you are concerned about spending the money, buy a home safe (£15-20?) and let a family member set the combination for it to something they arent going to forget.

Put the confirmation letters for your ISA, etc in there (or cards, etc for instant access accounts), that way you won't be able to just dip into it whenever you feel like it, since YOU won't be able to get at the information. (Letters from NS&I contain your NS&I number which you need to log onto Internet Banking, to do anything with your account)

Maybe a silly suggestion but one that could work for you if you lack the control to do it yourself.

Ian_W

agal wrote:

What are the tax implications of a £25k gift. Is it counted as income for the recipient? Do the donors have to live for seven years to avoid inheritance tax?
Just wondering

NO tax implications for the recipient other than on any interest earned which is why as much as poss, as soon as poss, in a cash ISA is good. It's not classed as income in tax terms.
There may be a tax implication on the donor's estate for up to 7yrs, depends if they're over IHT threshold but the OP won't have to find any tax - the estate will pay it before being divvied out to the beneficiaries.

tom188

Buy a flat in Eastern Europe and let it, you'll probably double your money in less than 5 yrs.

Rubbish. Do you realise how overpriced and oversupplied these properties are. The only winners are the developers and the Eastern Europeans willing to sell their properties to idiotic Brits who dont understand anything about investing.