Income Tax/Capital Gains Tax?

Grey_Critic

You say that you are Homeless and Unemployed so I would assume on benefits of some kind.

A gift of Cash would probably impact your benefits - not sure about a car but I think that again could impact on benefits.

getmore4less

No gift tax in UK.

UK IHT(if applicable) unlikely to apply as it will be below the nil rate band, no tax, no taper relief estate ends up paying a bit more IHT.


Aunt's tax regime may have it own taxes.

JBTISH

neilmcl said:

It would be better if the gift was indeed cash. No cash gift will be subject to tax unless it in itself generates income, ie, interest. There may be inheritance tax to pay should your family member die but that will depend on how much was gifted and how long after the gift the family member dies.

Good morning neilmcl

I just wanted to say ‘thank you’ for the advice and let you know it all worked out perfectly. The gifted money came into my account at 10:00am and I bought a car by 12:00pm. I then gifted the car to someone else by 14:00hrs. Advice on here proved very useful and gave me a lot of peace of mind. Thank you. 

JBTISH

cx6 said:

The answer to this is simple. 

There is no UK tax to pay on gifts (cars, money, boats, anything). You Aunt can give you the money or the car (or both!) and there is no UK tax to pay - either income or capital gains or anything else.

You said your Aunt lives abroad - she needs to check the tax rules in that country about ***giving*** gifts. Normally there in no tax to pay for the giver, but check.

Inheritance tax is indeed something to consider. In UK an estate is allowed to bequest £325k inheritance after that the estate pays 40% tax on the rest. The car / money would count towards that limit. However, as time goes by that is reduced by the inheritance tax taper up to year 7 (Google it)

However if your aunt is still abroad for tax purposes when she dies the inheritance tax laws of that country will apply.

Good morning cx6

Just wanted to say ‘thank you’ and let you know everything worked out very well and I bought a car. From receiving the gifted money to purchase of the car took four hours and everything was done efficiently which gave me peace of mind. Thank you.