Tax on gift from friend

densol_2

No one has mentioned Money Laundering - those were my immediate concerns

ukste

densol wrote: »

No one has mentioned Money Laundering - those were my immediate concerns

The question I asked was related to taxation. I sought an answer to that question and that question alone. The question was not an invitation for people to speculate on anything other than what I asked. Odd though it may apear, there is nothing more to it than what I stated in post number 1.

densol_2

ukste wrote: »

The question I asked was related to taxation. I sought an answer to that question and that question alone. The question was not an invitation for people to speculate on anything other than what I asked. Odd though it may apear, there is nothing more to it than what I stated in post number 1.

You will find on MSE that people are ever so helpful and point out stuff a newbie may not have even considered I've learned loads from these forums

payless

saad800 wrote: »

Gifts are exclusive from all taxes.

Maybe not in this case, but not a rule that applies to all cases- IHT may be payable by receiver(donee) in some cases if donor dies within 7 years

ukste

payless wrote: »

Maybe not in this case, but not a rule that applies to all cases- IHT may be payable by receiver(donee) in some cases if donor dies within 7 years

Yes I understand what you mean. Certainly if he was to die within 7 years and were we talking about an amount in excess of 325k then I know for sure that there would be a problem relating to Inheritance Tax.

purdyoaten

payless wrote: »

Maybe not in this case, but not a rule that applies to all cases- IHT may be payable by receiver(donee) in some cases if donor dies within 7 years

IHT is never paid by the donee. It is paid by the estate and I am not being pedantic.

zygurat789

ukste wrote: »

The question I asked was related to taxation. I sought an answer to that question and that question alone. The question was not an invitation for people to speculate on anything other than what I asked. Odd though it may apear, there is nothing more to it than what I stated in post number 1.

Presumably there may be income accruing from the gift which since you are "holding it for him" you would gift back to him; so long as you are both basic rate taxpayers that's no problem, but the extra income may put you into the 40% bracket, in which case, which of you would pay the additional tax.
It's also possible that this asset, newly arrived in your possession, should come to the attention of HMRC, they take a keen interest in a sudden unexplained significant increases in personal assets and may wish to ask a few questions.

ukste

zygurat789 wrote: »

Presumably there may be income accruing from the gift which since you are "holding it for him" you would gift back to him; so long as you are both basic rate taxpayers that's no problem, but the extra income may put you into the 40% bracket, in which case, which of you would pay the additional tax.
It's also possible that this asset, newly arrived in your possession, should come to the attention of HMRC, they take a keen interest in a sudden unexplained significant increases in personal assets and may wish to ask a few questions.

Yes both basic rate taxpayers.

How would it come to the attention of HMRC?

getmore4less

ukste wrote: »

Yes both basic rate taxpayers.

How would it come to the attention of HMRC?

Tax in the UK is an honour system you tell HMRC what income, capital gains or other taxes are due they tax you.

failures involve penalties.

They have way to cross check what you tell them is correct

Hoof_Hearted

You are obviously trusted by the donor. I think the solution could be that he makes a will and names you as executor to ensure his wishes are carried out to the letter.