Are Gifts tax Free

tw3

My ageing mother (88) has offered to give me £25,000.

Is this taxable or just a gift?

She will have no liability regarding inheritance tax, so its just about wether this constitutes income or not.

regards

System

If she dies within 7 or 8 years it could be part of her estate for inheritance tax purposes or care cost purposes

cte1111

There is no gift tax in the UK, the gift will not count as income. If the relative is giving money away to try and avoid paying care costs, then this may be treated as deprivation of capital, in which case the donor will be treated as if they still had the money.

zagfles

tw3 wrote: »

My ageing mother (88) has offered to give me £25,000.

Is this taxable or just a gift?

She will have no liability regarding inheritance tax, so its just about wether this constitutes income or not.

regards

IHT would be the only tax, no income tax.

If you're claiming means tested benefits you'd obviously need to declare it as capital, also if she is claiming means tested benefits (eg pension credit) they might regard it as deprivation and treat her as if she still has the capital, same if she were to claim means tested benefits in the near future eg housing benefit, PC etc.