Financial gift

anonymous2012

Hi I hope I'm posting in the right place if not can you advise me where I should?
I'd appreciate any advice. My sister has recently inherited a family member's property and savings. She has decided to share her good fortune with me and would like to gift me a one off payment of £100,000. Can I have your advice on what is the simplest and most tax efficient way to complete this transaction?
Thanks
P

le_loup

There is no tax on gifts.

00ec25

anonymous2012 wrote: »

Can I have your advice on what is the simplest and most tax efficient way to complete this transaction?

she gives you a cheque - there is no tax on gifts in the UK

tyllwyd

There is no tax on gifts - but your bank might be a bit surprised to receive £100K from another person with nothing to suggest where it has come from, so it might trigger their money laundering checks. You might be best going to speak to them to see if there is any paperwork they would like to see from you both. It would be best to have a papertrail in any case if you want to use the money for a house deposit, because the mortgage company might want to see where the deposit came from.

getmore4less

No tax on gifts. but potential tax implications for 7 years

If your sister died will her estate be liable for IHT.

£325k after anything given to spouse or charity would be a value where it is worth considering other options like a deed of variation.

(note the gift uses up the nill rate band so is not taxable but leaves less for the rest of the estate.)

ognum

Of course if she doesn't live 7 years then there will be tax to pay!

getmore4less

ognum wrote: »

Of course if she doesn't live 7 years then there will be tax to pay!

incorrect, May be tax implication but the gift will not be liable for the tax except in very rare circumstances

John_Pierpoint

00ec25 wrote: »

she gives you a cheque - there is no tax on gifts in the UK

Expect to get a questionnaire from your bank, on behalf of the money laundering police.

Google "Money Laundering" for more information and various due diligence (anus protectus) limits.

It is the price we pay for being a wealthy country in a criminal global economy.

thenudeone

You'd be better to put the £100k somewhere separate from your day to day banking (eg a savings account in a separate bank). Otherwise you may find all of your accounts at the bank frozen with absolutely no information as to why, and no appeals process (thanks to money laundering controls), as has been reported on these forums several times.

Goldenyears

thenudeone wrote: »

You'd be better to put the £100k somewhere separate from your day to day banking (eg a savings account in a separate bank). Otherwise you may find all of your accounts at the bank frozen with absolutely no information as to why, and no appeals process (thanks to money laundering controls), as has been reported on these forums several times.

Can someone direct me to articles along the lines of "Something terrible is going to happen to you if you transfer £100,000 into your bank account"

I've done it a couple of times. I'm still waiting. Someone did call and try to sell me an investment product.

If you google money laundering you find out how to do money laundering checks, hardly something the OP is interested in.

tyllwyd

Well if they don't flag up a one-off transfer of £100K from one person to a different person, you would have to wonder what they would flag up?