Gifts of Money - NOT Inheritance

Willowford

Hello,

Can anyone clear up a simple (I hope) question?

What if any money am I allowed to receive without it being subject to a self-assessment tax liability?

There have been many articles and forum discussions on gifting money in relation to family inheritance tax - but this isn't anything to do with that. Thanks.

dzug1

Doesn't make any difference whether it's to do with IHT or not- the principle is still the same. Gifts are not subject to income tax. They are not income. So you can receive any amount without having to declare it as income


Once you have the gift, then any interest you receive from investing is subject to income tax in the normal way.

CLAPTON

Willowford wrote: »

Hello,

Can anyone clear up a simple (I hope) question?

What if any money am I allowed to receive without it being subject to a self-assessment tax liability?

There have been many articles and forum discussions on gifting money in relation to family inheritance tax - but this isn't anything to do with that. Thanks.

as already said there is no gift tax in the UK; you can receive any amount of money from anyone as long as it is truely a gift

however, if the person giving the money, dies within 7 years then the value of the gift (subject to some exceptions) will be included in their estate for IHT purposes.

agrinnall

While dzug1 is right about gifts, it's not clear whether the money the OP has received is a gift or not, the mention of gifts in the final sentence could be un herring rouge.

If the money is something that HMRC could regard as income then whether SA is required or not depends on a number of factors which we simply don't have enough information to decide.

OP, you need to tell us more about what the money is - if it's a gift then say so, if it's not then what is it, how much is it, where has it come from?

dzug1

The post title also includes the word 'gift' so maybe two red herrings.?

agrinnall

dzug1 wrote: »

The post title also includes the word 'gift' so maybe two red herrings.?

Good point, that hadn't registered with me for some reason so I expect the herrings, along with the sardines, can go back to following le trawler (to paraphrase Monsieur E. Cantona).

Willowford

The 'gift' is a helping out from a friend (current, but soon to be ex partner (in the living/personal sense) in fact) - to help me buy a new computer. Does this affect the non-interest by HMRC in this sense?

PS - thank you all for taking time to reply. Much appreciated.

agrinnall

It's of no interest to anybody, it's no different to the friend buying the computer themselves and gifting it to you.

Willowford

Ok - well thank you very much again for your advice/help