Tax on money gifts

Benson

If someone gives you a large gift of money do they or we have to pay tax on it?

Robert_Sterling

A gift of money is not taxable.
However to prevent people avoiding Inhertance Tax by making gifts of monet there is a rule as follows:-

A gift of money is called a PET.
PET means a Potentially Exempt Transfer.
If the giver leves for 7 years after making the gift there is no IHT.
If the giver leaves less than £285,000 there is no IHT.
If the giver leaves more than £285,000 and dies less than 7 years after making the gift then some IHT might, or might not, have to be paid.

oldwiring

There are however certain gidts that can be made that are exempt from the PET rules. It all depemds what you mean by large and the situation in which the gidt is made. Scroll down to Exemted Giftson the link.

exil

Basically when someone gives you a large cash gift you should put a bodyguard on them and pay for their health insurance! For the next 7 years anyway.

Benson

Its a gift of 25k from PIL

:j

oldwiring

exil wrote:

Basically when someone gives you a large cash gift you should put a bodyguard on them and pay for their health insurance! For the next 7 years anyway.

You mean Term Assurance ????:D