any ideas?

thehound

Hi folks. Any advice gratefully received...
A relation has inherited a sum of money, which they have now received. They want to give me some of it and that amount will probably be over £3000.

Anything over £3000 is due for income tax isn't it?

Any good ideas for decreasing my liability? Or any other suggestions?

Many thanks.

PS sorry if this is the wrong place to ask for advice... let me know and I'll move it!

jem16

It's a gift to you from your relative. No income tax is due.

thehound

jem16 wrote: »

It's a gift to you from your relative. No income tax is due.

Thanks.
1 Are you absolutely sure?
2 Does it need to be shown on a tax return as other income?

Sorry to doubt you but I can't believe;) the chancellor doesn't want to get his hands on it!

jem16

GB may have had his hands on it already but only if Inheritance Tax was due. When your relative received the inheritance from the estate, any tax due would have been paid before it was paid out. There may not even have been any tax paid if it was under the IHT threshold.

Your relative has now decided to give you £3,000 as a gift which they are quite entitled to do. It would only become a problem if your relative was to die within 7 years and their estate was subject to IHT.

You don't need to put it anywhere on your tax return.

thehound

jem16 wrote: »

GB may have had his hands on it already but only if Inheritance Tax was due. When your relative received the inheritance from the estate, any tax due would have been paid before it was paid out. There may not even have been any tax paid if it was under the IHT threshold.

Your relative has now decided to give you £3,000 as a gift which they are quite entitled to do. It would only become a problem if your relative was to die within 7 years and their estate was subject to IHT.

You don't need to put it anywhere on your tax return.

Many thanks.
I think the gift will be OVER £3000. But from what you say I don't think it makes any difference. Phew!:j