Cash Gift from parents - Do I need to pay income tax on this gift ?

John_Pierpoint

I think mijana needs to know the exact tax status of father, both in the UK and in his present country of residence.

Were their locations reversed potential tax (IHT/CGT) could not be avoided by father giving his wealth away a short time before death. In this country there are even rules about giving money to ones wife if she is a foreigner.

taxing

Garv0r wrote: »

I'm sure there is an income tax rule that might come in to play here, which arose as a result of fathers gifting their ex wives substainence money.

If "it isn't in your usual lifestyle" to receive such large sums, then I believe it might be subject to Income Tax. I'm guessing it's an attempt to stop money laundering? Again, knowing me I'm completely wrong!

Yep...completely wrong.

themaverick1953

My wifes mother gave her house to her so its now in my wifes name. Is she liable for any sort of tax when she sells it?

Any

themaverick1953 wrote: »

My wifes mother gave her house to her so its now in my wifes name. Is she liable for any sort of tax when she sells it?

Is it just in her name? Ie,who lives in it?
If her mother dies within 7 yrs it will still be subject to IHT.
Did her mother pay any CGT? Does your wife use it as her principal residence?
All this affects the amount of possible liability to CGT.

seanathome

Glider3560 an additional reply to your "Why resurrect a three month old thread? ".

Today, I'm in a position where I need advice on this topic. That's almost a year later. The original, & additional posts, have helped me a lot. I, for one, am grateful that the thread was resurrected.

the_quick

I read this topic and I'm still not sure.

I'm in the position when my parents want to give me 15K for buying a house (for my self to live in it). If I understand correctly they can give me this money and I will not pay any tax as long as they will live for another 7 years. Can some one please confirm?

dzug1

the_quick wrote: »

I read this topic and I'm still not sure.

I'm in the position when my parents want to give me 15K for buying a house (for my self to live in it). If I understand correctly they can give me this money and I will not pay any tax as long as they will live for another 7 years. Can some one please confirm?

Correct. And even then only if their estate is over the IHT limit.

John_Pierpoint

the_quick wrote: »

I read this topic and I'm still not sure.

I'm in the position when my parents want to give me 15K for buying a house (for my self to live in it). If I understand correctly they can give me this money and I will not pay any Inheritance Tax (IHT) as long as they will live for another 7 years. Can some one please confirm?

If their individual wealth at death is less than 325K (or 650K as a couple) IHT is unlikely to be an issue anyway.

Should the parents need Council subsidised care within (say) 10 years then the gift could become an issue within the family.

You may want to think about transferring the gift as as present of 6K on tax year one and a further 3 k in tax year two (and getting married;)).

By spreading out the payments you will not attract the attention of the money laundering "police" - you might want to Google for the actual figures.

the_quick

Already married

Hopefully parents will be OK in next ten years, they are just only 55. My parents live in Poland, I'm a British resident for last 6 years (working and paying taxes in UK), as Polish taxman allow for gifts between parents and children without limit, but such action has to be reported. But I guess it does not make any difference for UK taxman?
The cash will come directly from my mums bank account or from my polish bank account. Not really in position to wait till next financial year, so it all will come as single bank transfer.

leo1975_2

Hi

Theres some really useful info here (no matter how old!) thanks to all those who post

I just require some clarifcation if somebody could help please?

My father in law is ill and is giving us £15k - all being well we certainly anticiapte him being here longer than the 7 years before IHT comes into play. We are putting this money into ISA's to be used as a deposit for a house purchase in about 18 months.

My questions are - as the money will gain interest in the ISA's, will I need to inform the tax man? Also, is there any need for us to split the money into two payments so we receive some of it this financial year and the rest of it the next finanical year?

Thanks