Gifts from surplus income

loadsamunney

I have researched hard, to find quality information regarding gifts from surplus income.
I am now more than happy that, provided all rules are adhered to, it is not as "chancy" as it first appears and will be free of inheritance tax if done properly

What I cant seem to find , is, any info on weather the gift that is recieved then becomes taxable as income for the recipient.

Would be grateful if anyone knows , to reply stating your background knowledge, as I dont want to take any chances with this. Thanks all.

CLAPTON

loadsamunney wrote: »

I have researched hard, to find quality information regarding gifts from surplus income.
I am now more than happy that, provided all rules are adhered to, it is not as "chancy" as it first appears and will be free of inheritance tax if done properly

What I cant seem to find , is, any info on weather the gift that is recieved then becomes taxable as income for the recipient.

Would be grateful if anyone knows , to reply stating your background knowledge, as I dont want to take any chances with this. Thanks all.

gifts are not taxable in the UK with the exception of the IHT rules.


my qualifications for knowing that is the same as my qualifications for knowing that my mate buying me a pint last night is not a taxable event


if you don't want to take chances then pay for professional advice.

getmore4less

Don't forget gifts from income AND reducing capital(beyond the exemptions) are not independent.

The best you can do is not increase the asset base.

xylophone

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

"Regular gifts or payments that are part of your normal expenditure
Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal lifestyle.
These include:
monthly or other regular payments to someone
regular gifts for Christmas and birthdays, or wedding/civil partnership anniversaries
regular premiums on a life insurance policy - for you or someone else"

The recipient is not taxed on the gift - if he earns income on the gift (dividend/interest) then this will be taxable in the normal way according to status.

thenudeone

Gifts are not taxed as income of the recipient in any circumstance in the UK.

chrismac1

Note that various other countries, such as Ireland, have a gift tax so if the donor or recipient is resident in one of those there can be a tax issue.

loadsamunney

Many thanks to all who responded, except clapton. most helpful

CLAPTON

loadsamunney wrote: »

Many thanks to all who responded, except clapton. most helpful

oh dear...................

relaxtwotribes

In defence of Clapton, who is one of the most highly regarded posters here, he was the only one who gave his qualification, the only one who gave you the correct advice given your requirement not to take any chances and his advice is correct, to boot.
Now that some time has elapsed, maybe you could reconsider giving him a thank you.