Regular cash gifts...?

swbrua

If tax is paid on the money by the person who initially earned it there would be no problem, but if it were found that the gifts were not in fact gifts and were in exchange for goods or services you could find yourself in extreme trouble.

For anyone to give proper advice beyond this you'd need to explain the situation. For example, if it's a parent gifting the money HMRC are much less likely to think there is a problem than if the money is coming from whomever is your employer.

Assuming the gift falls under the following, this might be relevant:

Regular gifts or payments that are part of your normal expenditure
Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal lifestyle.
These include:
monthly or other regular payments to someone
regular gifts for Christmas and birthdays, or wedding/civil partnership anniversaries
regular premiums on a life insurance policy - for you or someone else
You can also make exempt maintenance payments to:
your husband, wife or civil partner
your ex-spouse or former civil partner
relatives who are dependent on you because of old age or infirmity
your children, including adopted children and step-children, who are under 18 or in full-time education

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

lov3cats wrote: »

And therein lies my answer- now was that so hard? Although I don't see how HMRC would know it was for "no reason" or for any reason at all unless that form really does exist.

because you'd declare it on your tax return

CLAPTON

genuine gifts are tax free (always excepting potentially exempt transfer for IHT purpose; these presumably won't apply as the gifts are from abroad)

the may be issues to do with money laundering that would be flagged by the bank

however if the money is delivered in cash and stored under the floorboards it's unlikely that anyone will ever know.

CLAPTON

swbrua wrote: »

Assuming the gift falls under the following, this might be relevant:



http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm




because you'd declare it on your tax return

if the money was a gift there is no tax to pay and no need to declare it on a tax return

antrobus

swbrua wrote: »

....
For anyone to give proper advice beyond this you'd need to explain the situation...

I'm glad you agree.

Based on what we know of the 'situation' so far, I would suspect that the OP runs the very real risk that his bank will report him under the money laundering regulations, and that both criminal and tax investigations would follow naturally.

lov3cats

CLAPTON wrote: »

genuine gifts are tax free (always excepting potentially exempt transfer for IHT purpose; these presumably won't apply as the gifts are from abroad)

the may be issues to do with money laundering that would be flagged by the bank

however if the money is delivered in cash and stored under the floorboards it's unlikely that anyone will ever know.

And how would the bank resolve this? How would someone even keep track of the gift, when it was given, by whom, etc.? Any official documents? Noting it down doesn't seem very convincing to anyone who was interested- i.e. the bank.

lov3cats

antrobus wrote: »

I'm glad you agree.

Based on what we know of the 'situation' so far, I would suspect that the OP runs the very real risk that his bank will report him under the money laundering regulations, and that both criminal and tax investigations would follow naturally.

Validation, woo-hoo- right? *Her

lov3cats

CLAPTON wrote: »

genuine gifts are tax free (always excepting potentially exempt transfer for IHT purpose; these presumably won't apply as the gifts are from abroad)

the may be issues to do with money laundering that would be flagged by the bank

however if the money is delivered in cash and stored under the floorboards it's unlikely that anyone will ever know.

Wait a second... The gifts are from abroad? LOL, where did you read that?

CLAPTON

lov3cats wrote: »

Wait a second... The gifts are from abroad? LOL, where did you read that?

what point are you making?
I've answer your question.
you can say thank you if you like

lov3cats

CLAPTON wrote: »

what point are you making?
I've answer your question.
you can say thank you if you like

I guess English isn't your first language.

le_loup

lov3cats, it's nice to see new members here but I hope, with your attitude, you won't be requiring any other advice on this board.