A totally innocent tax question

singlemindedly

Hi all, this may sound daft but I am confused... having grown up in Austria, where tax is simply taken out of your pay and there's no tax returns to do, I then moved to the States where EVERYBODY has to do a tax return (even though there are deductions from wages), and now I'm here I simply cannot seem to find a simple guide to what to do. Some knowledge is presumed and I simply don't have it!

My situation is this - I'm resident here now (EU citizen), working full-time in the same job since January 07. No other income, living in rented accommodation (private).

Do I need to do a tax return? And if so, which one?

Thanks!!
Susanne

jem16

It doesn't sound as if you need to do a tax return assuming you are on PAYE ( i.e. your tax is deducted directly from your wages ).

keziah

From what you've said, no you wouldn't have to do a tax return

Mikeyorks

If you're on PAYE and have fairly straightforward affairs - it's unlikely. But you do need to contact HMRC if you pay tax at 40% and have interest from savings etc (as there will be more tax to pay on the interest - as the Bank or whatever, only deduct 20% at source). Even then - they will likely do it via a P810 (simple 1 page return) and restrict your coding to collect the extra.

Otherwise HMRC will tell you if they need a Return.

carol99_2

A relative wants to transfer some cash lump sums to me to (hopefully) avoid future inheritance tax. Does anyone know if this would fall under Capital Gains? All the HMRC info seems to relate to the profit on disposal of an asset.

Cheers!!

dzug

If it's cash and always has been then there are no capital gains involved.

However if he sold an asset to get the cash then there is the potential for CGT.

Ems!

carol99 - If it is cash being given to you then, no, there won't be any cgt implications

Mikeyorks

carol99 wrote: »

A relative wants to transfer some cash lump sums to me to (hopefully) avoid future inheritance tax.

Unclear.

If you mean 'gift' - then the previous responses apply. Provided the relative lives for the next 7 years.

But if you mean 'transfer' as in providing a temporary home for the money 'to avoid inheritance tax' ... that's evasion. Which is potentially much more expensive than inheritance tax.

carol99_2

Sorry Mike have only just found your reply. My relative has to have a serious operation shortly which had him thinking about inheritance tax. Hes decided to give some money away before anything happens to him. This is a 'no strings attached' gift, the money is mine to do as I wish, it isnt his but held in my name or anything like that. I understand that it will have to be included in his estate under inheritance tax regulations unless he survives for a further 7 years, but I dont want to be stung for CGT too.