Gift tax ...is there any?

Stubod

ref an earlier reply to a post, I am intrigued by the subject of "gift tax". I understand inheritance tax, 3k per annum etc.

But ignoring the 7 year inheritance situation, is it correct that any individual can give any amount of money to any other individual without either having to pay tax, or would the recipient have to declare this as unearned income and pay tax accordingly?

ie if you won the lottery and decided to give some friends 10k, how would this be taxed?

Mojisola

Stubod wrote: »

ref an earlier reply to a post, I am intrigued by the subject of "gift tax". I understand inheritance tax, 3k per annum etc.

But ignoring the 7 year inheritance situation, is it correct that any individual can give any amount of money to any other individual without either having to pay tax, or would the recipient have to declare this as unearned income and pay tax accordingly?

ie if you won the lottery and decided to give some friends 10k, how would this be taxed?

It wouldn't be.

CLAPTON

no gift tax in the UK

ILW

Mojisola wrote: »

It wouldn't be.

Could be if they were employees.

le_loup

Stubod wrote: »

ie if you won the lottery and decided to give some friends 10k, how would this be taxed?

Win the Euromillions and give it all to me ... no tax.
Tell you what, send me a gift and we can test it.

dzug1

Stubod wrote: »

But ignoring the 7 year inheritance situation, is it correct that any individual can give any amount of money to any other individual without either having to pay tax, or would the recipient have to declare this as unearned income and pay tax accordingly?

It's not income - it's capital. Therefore there is (IHT aside) no tax.

Mind you a gift tax might be a good idea. Enough people seem to believe there is one already for it to be slipped in unnoticed.:D

innovate

dzug1 wrote: »

Mind you a gift tax might be a good idea.

If any Party has a death-wish, they would achieve an instant certain success by suggesting a tax on gifts in their manifesto.

le_loup

I seem to remember that there are gift taxes in other countries, notably the USA. But then again half of what I remember is wrong and I forget the other half.

xylophone

And in Ireland http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

badger09

innovate wrote: »

If any Party has a death-wish, they would achieve an instant certain success by suggesting a tax on gifts in their manifesto.

Maybe I could apply for re-employment @ HMRC to ensure compliance with the new Gift Tax legislation :rotfl:

Stubod

Hi there,

and many thanks for your replies.

Therefore I can open any business and employ all my mates to work for me on a voluntary basis, but every month I can give them a gift of 50k?

Sounds ideal to me?..or am I missing something.

NB I havn't won any money, but if I do you can all have some.

Many thanks....