Being gifted 60k

justry4n · 27 February 2018 at 9:07AM

Hi there, my mate is pretty well off - and basically has offered me 60k to spend however I want.
Would I have to pay any tax on this? Does he just have to bank transfer me the money, and potentially sign a document saying this is a gift and no more?

AnotherJoe · 27 February 2018 at 9:25AM

He doesn't have to sign any documents and you don't have to pay any tax.

bowlhead99 · 27 February 2018 at 9:38AM

AnotherJoe wrote: »

He doesn't have to sign any documents and you don't have to pay any tax.

It's as simple as that really.

For fun, you could make it more complicated. For example, maybe it turns out he's given £60k away to 10 people and then he dies penniless next week. HMRC would say that the £600k should be added back to his estate to calculate inheritance taxes and as the estate doesn't have any money they will be entitled to chase OP for around £10k of inheritance tax on his £60k.

Or maybe he gives you the money to spend as you wish, and you are really grateful for his kind help so you help him paint his house and teach him to play piano. Then after a tip off, HMRC ask you how much you charged him for the decorating work and piano lessons and why it's not in your tax returns, and you have to argue you're not a decorator or a piano teacher and the fat wodge of cash he just gave you which arrived in your bank account wasn't payment for services, or employment income, he's just a generous guy you're doing favours for...

Sorry OP it's just a bit boring when the answer is 'no problem, you're fine, there's no gift tax in the UK'

Money_Help · 27 February 2018 at 10:07AM

As long as he survives 7 years after making the gift there should be no Inheritance Tax issues. However if he does within 7 years there could be.

badger09 · 27 February 2018 at 1:00PM

No problem paying for the Merc then:cool:

BucksLady · 27 February 2018 at 2:07PM

justry4n wrote: »

Hi there, my mate is pretty well off - and basically has offered me 60k to spend however I want.

He won't be unless he puts a brake on his generosity

Eco_Miser · 27 February 2018 at 2:27PM

As said, there is no need for documentation, but it wouldn't hurt to have a signed note of the gift in case anyone investigates your windfall for money laundering, or undeclared work income, etc.