Cash gift

leopoldo_2

I was recently gifted more than 3000 pounds by my mother and I have a couple of questions. 
Do I have to declare this now or simply make a note of it because of the 7 year rule (in the event of her death). I know it's not taxable at present.
Do I pay capital gains tax on interest earned from these savings (bank account and cash ISA)? Is the USA still exempt? Is there still a 1k threshold for the bank savings?
Just want to avoid falling foul of HMRC, thanks

eskbanker

leopoldo_2 said:

I was recently gifted more than 3000 pounds by my mother and I have a couple of questions. 
Do I have to declare this now or simply make a note of it because of the 7 year rule (in the event of her death). I know it's not taxable at present.

There's nothing for you to declare, but her executor should be made aware of it when processing her estate in future, if within seven years.

leopoldo_2 said:

Do I pay capital gains tax on interest earned from these savings (bank account and cash ISA)? Is the USA still exempt?

No, CGT doesn't apply to savings, but interest is taxable (for income tax) unless within an ISA.

leopoldo_2 said:

Is there still a 1k threshold for the bank savings?

Yes (for basic rate taxpayers).

leopoldo_2

Many thanks for your help 

Keep_pedalling

If your mother made no similar gifts in the previous tax year then the that years exemption can be carried over so if that is the case and the gift is under £6k it is all exempt. 

This is only of any real importance if your mother’s net worth actually takes her estate into IHT territory.