Limit of tax free gift?

bigpat

Hi,

Can anyone tell me whether money gifted by one adult to another is taxable? It's not a parent-child thing, or a cohabiting couple or anything like that. And it's not payment for anything. Just a gift from one person to another.

Is there a threshold above which it's taxable? If so at what rate? The giver is not claiming it as any kind of expense, so presumably does not need to mention it. But should the receiver declare it and if so how? Both are working adults and British taxpayers.

Thanks

zagfles

If the giver dies within 7 years then inheritance tax might be due.

See https://www.gov.uk/inheritance-tax/gifts

bigpat

zagfles wrote: »

If the giver dies within 7 years then inheritance tax might be due. ..

I must admit I hadn't thought of it as possibly falling under inheritance, and hopefully the giver will live a lot longer than 7 more years, but that's useful to know.

But assuming that's not the case, does the receiver have to declare it as income and pay tax?

00ec25

bigpat wrote: »

But assuming that's not the case, does the receiver have to declare it as income and pay tax?

arghh the good old question that is asked nearly every day on here


answer remains the same: NO, NO and NO

xylophone

But assuming that's not the case, does the receiver have to declare it as income and pay tax?

A cash gift from your friend to you is not taxed as income.

You don't need to declare it.

The friend may wish to keep a record of the gift with his papers for IHT purposes.