Regular cash gifts from boyfriend - do I have to pay tax?

ohmae1887

Hello everyone,

To put it bluntly, my boyfriend wants to regularly give me money in order to help me out. I am a student and currently do not have a job. The amount would be in the thousands each month, and would go directly from his current account into mine or be deposited in cash. Would I have to pay any tax on this money or tell HMRC at all? I'm assuming that because it would be a relatively large amount of money for me (I haven't had any income for 2 years), it might be flagged up by my bank? I should stress that ideally all the money would be stored in my current account as I hate carrying/having cash.

I have read that you can receive up to £50k a year and you won't be taxed, as long as the money isn't income from a job. But then I have also read that there is a £3k gift limit per year?

Thank you in advance for your responses.

McKneff

Why do you need thousands each month to help you out.

Money laundering springs to mind, and Im sure it will spring to mind in the banks mind and the money laundering peeps.

Is he giving it to you or are you just holding it for him....


Sorry, but it all sounds a bit dodgy. A couple of hundred quid a month but thousands....

le_loup

There is no gift tax in the UK. Anyone can give anyone any amount without income tax implications.
There could be other implications.

ohmae1887

McKneff, I need thousands each month because I'm high maintenance and have expensive taste. I am aware of how odious it makes me sound, but I do not think that the character judgement of being a spoilt brat counts, or should count, as part of the criteria for money laundering.

I am indeed concerned that I might be accused of money laundering because of the large amount and the lack of employment. But then how to do you provide proof that you did not earn the money through employment, be it illegal or legal? My boyfriend's money comes from his job in finance and has had income tax deducted from it prior to me receiving the money. I would receive the money in cash and through bank transfer. I would not be 'holding' money for him because it becomes my money to spend.

Does anyone know which is the relevant authority to contact for clarification?

CLAPTON

ohmae1887 wrote: »

McKneff, I need thousands each month because I'm high maintenance and have expensive taste. I am aware of how odious it makes me sound, but I do not think that the character judgement of being a spoilt brat counts, or should count, as part of the criteria for money laundering.

I am indeed concerned that I might be accused of money laundering because of the large amount and the lack of employment. But then how to do you provide proof that you did not earn the money through employment, be it illegal or legal? My boyfriend's money comes from his job in finance and has had income tax deducted from it prior to me receiving the money. I would receive the money in cash and through bank transfer. I would not be 'holding' money for him because it becomes my money to spend.

Does anyone know which is the relevant authority to contact for clarification?

there is NO tax on gifts in the UK

what do you want clarified?

TheCyclingProgrammer

He can gift you as much as he likes. No income tax complications for you. Possibly IHT complications if he dies within 7 years for his estate but they may be considered gifts from surplus income which may make them exempt anyway (and in any case it's not anything YOU need worry about).

ohmae1887

CLAPTON wrote: »

there is NO tax on gifts in the UK

what do you want clarified?

Thank you for you response.

I seek clarification on potentially being suspected of money laundering. From my point of view, someone depositing fairly large amounts on cash (i.e. physical currency) into their account screams drug dealer and would prompt investigation. Needless to say I am not one, but I will have the behaviour of deposit large amounts of cash in common with one. As such, I want to know more or less under what grounds it is decided whether the depositing of money is suspicious or not. How can they know for certain that the money is a gift as opposed to proceeds from illegal activities?

I just remember hearing of a drug dealer at school who had tons of money stashed in his room because he couldn't deposit such a large amount of money, and wonder how the issue of the quantity of cash is any different to mine.

Thanks

GingerBob_3

McKneff wrote: »

Why do you need thousands each month to help you out.

Money laundering springs to mind, and Im sure it will spring to mind in the banks mind and the money laundering peeps.

Is he giving it to you or are you just holding it for him....


Sorry, but it all sounds a bit dodgy. A couple of hundred quid a month but thousands....

LOL! You obviously work for a bank.


MLP! MLP! Block Account! Block Account! Exterminate! Exterminate!

PasturesNew

Are you one of those pretty girls that has men giving you lots of money in exchange for you sending them pouty selfies 3x a day?

... I wish I could do that. There's a very limited market for "older woman who doesn't take care of herself and looks !!!!!! in photos".

booksurr

why would it be deposited in cash?

don't be such a drama queen, you say your BF works in finance so let him do it only by bank transfer then if your bank asks you where all your money has come from you have a perfect trail to show its origin, and anyone looking at your BF's bank account has a perfect trail to see where he got it from to start with

Darksparkle

ohmae1887 wrote: »

and wonder how the issue of the quantity of cash is any different to mine.

Thanks

Because his comes from illegal activities that he won't want to declare rather than yours coming from your bf who legitimately earned it (as you say).

As said, if he does a bank transfer than there is a clear audit trail if anyone does question it.