Do I have to pay tax if my bro sends me money?

Rickyboy999

My bro has given me a gift if £85k to buy a new house. And I have sold the old house I lived in and am staying with parents. I lived at the old house but it was in my mums name so mum will have to pay capital gains tax. Fine, I understand that. But bro and mother think I may be hit with a tax bill for the money he gave me? Its not a loan and solicitor has checked the money from a legit source. Can someone confirm this - just spent 30 mins at an acct with mum and they are sure I don't have to pay any tax. Yet the accountant mum uses thinks I may have to think I might have to and is getting back to her?!

pjcox2005

Hi, the comments re selling old house and living with parents are irrelevant.


The basic question is "my brother has gifted me £85k, do either one of us need to pay tax?"


The answer is no as there is no tax on gifts under UK tax law.


A potential issue could arise on inheritance tax if your brother died within 7 years of the gift in which case it would be taken into account when calculating the value of his estate on death.


Hope that helps.

Rickyboy999

Thanks for replying, Im assuming it makes no difference if the money was sent from South Korea as he lives there? He is planning on moving to the UK 2016.

macman

No it makes no difference to you. But I doubt if anyone on here is able to say if he is liable to pay tax on it if he is currently resident for tax purposes in South Korea. This is the sort of thing that should have been checked locally before the transfer was made.