Tax on Paypal Gift Money?

Bobby_Bouche

I've googled this and tried to search but cannot get a clear answer.
If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?

Thanks in advance.

00ec25

Bobby_Bouche wrote: »

I've googled this and tried to search

oh only if MSE would add this question to the sticky
no, no, no tax on the receipt of money gifts in the UK

the exception being if it is a gift done as part of inheritance tax planning where:
a) the donor dies within 7 years of the date of the gift
AND (most importantly)
b) their estate does not have enough cash left to pay inheritance tax on the value of the estate including the gift added bask to it.

A rather specific (and rare) set of circumstances, given the size of the tax free inheritance threshold these days

molerat

Bobby_Bouche wrote: »

I've googled this and tried to search but cannot get a clear answer.
If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?

Thanks in advance.

That question seems loaded. There is no tax on gifted money. Just because it is sent as a gift does not mean it is a gift, nor does it mean it is not taxable. The intention of the payment is key here.

boo_star

molerat wrote: »

That question seems loaded. There is no tax on gifted money. Just because it is sent as a gift does not mean it is a gift, nor does it mean it is not taxable. The intention of the payment is key here.

Agreed, the mention of "with no reference to goods or services and sent as a gift" seems to imply that the payment is probably not a gift, but OP is wondering if it isn't labelled as payment for goods or services would it be tax free, which of course it wouldn't be if it isn't a gift. What it is labelled as is irrelevant.

Pennywise

Bobby_Bouche wrote: »

If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?

Rather than being cryptic, why not say exactly the circumstances in which you receive this money? With tax, it's all about detail, not generalities.