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Receiving a cash gift from parents
cozzasmith
Posts: 31 Forumite
in Cutting tax
Hello. I'm looking for some advice. My parents wish to give me a cash gift of £25,000. I'm not sure if this is relevant but I am over 18, married, self-employed and paying UK income tax. Please can anyone advise me on the following:
1. Do I have to declare the gift on my self-assessment and pay income tax on the cash gift?
2. Would there be any tax implications for my parents?
3. What would the implications be if they were to pass away within 7 years of giving the gift (they would be over the IHT threshold)
4. Would there be a better way for them to gift me the money than a lump sum?
Many thanks in advance to anyone who can help. :j:
1. Do I have to declare the gift on my self-assessment and pay income tax on the cash gift?
2. Would there be any tax implications for my parents?
3. What would the implications be if they were to pass away within 7 years of giving the gift (they would be over the IHT threshold)
4. Would there be a better way for them to gift me the money than a lump sum?
Many thanks in advance to anyone who can help. :j:
0
Comments
-
1. No
2. No
3. Depends, what do you think their combined assets are? Are they married?
4. No.0 -
1. No
2. No
3. I will be old fashioned and assume your parents remain married to each other and as you say their (combined) estate will be over the IHT threshold then the cash is a Potentially Exempt Transfer (PET) or in the vernacular "the 7 year rule" - if you google that, you can find out what it means for yourself as those are facts which can be easily read and don't need explaining
https://www.gov.uk/inheritance-tax/gifts
https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-planning-and-tax-free-gifts-aw1mb2n7snwx
4. No0 -
Thank you both for your replies and answers, very helpful and much appreciated.0
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