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  • FIRST POST
    • Bobby_Bouche
    • By Bobby_Bouche 20th Oct 19, 12:32 PM
    • 33Posts
    • 2Thanks
    Bobby_Bouche
    Tax on Paypal Gift Money?
    • #1
    • 20th Oct 19, 12:32 PM
    Tax on Paypal Gift Money? 20th Oct 19 at 12:32 PM
    I've googled this and tried to search but cannot get a clear answer.
    If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?

    Thanks in advance.
Page 1
    • 00ec25
    • By 00ec25 20th Oct 19, 12:57 PM
    • 8,689 Posts
    • 8,608 Thanks
    00ec25
    • #2
    • 20th Oct 19, 12:57 PM
    • #2
    • 20th Oct 19, 12:57 PM
    I've googled this and tried to search
    Originally posted by Bobby_Bouche
    oh only if MSE would add this question to the sticky
    no, no, no tax on the receipt of money gifts in the UK

    the exception being if it is a gift done as part of inheritance tax planning where:
    a) the donor dies within 7 years of the date of the gift
    AND (most importantly)
    b) their estate does not have enough cash left to pay inheritance tax on the value of the estate including the gift added bask to it.

    A rather specific (and rare) set of circumstances, given the size of the tax free inheritance threshold these days
    Last edited by 00ec25; 20-10-2019 at 1:56 PM.
    • molerat
    • By molerat 20th Oct 19, 1:27 PM
    • 21,514 Posts
    • 15,775 Thanks
    molerat
    • #3
    • 20th Oct 19, 1:27 PM
    • #3
    • 20th Oct 19, 1:27 PM
    I've googled this and tried to search but cannot get a clear answer.
    If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?

    Thanks in advance.
    Originally posted by Bobby_Bouche
    That question seems loaded. There is no tax on gifted money. Just because it is sent as a gift does not mean it is a gift, nor does it mean it is not taxable. The intention of the payment is key here.
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • boo_star
    • By boo_star 20th Oct 19, 1:37 PM
    • 2,816 Posts
    • 2,163 Thanks
    boo_star
    • #4
    • 20th Oct 19, 1:37 PM
    • #4
    • 20th Oct 19, 1:37 PM
    That question seems loaded. There is no tax on gifted money. Just because it is sent as a gift does not mean it is a gift, nor does it mean it is not taxable. The intention of the payment is key here.
    Originally posted by molerat
    Agreed, the mention of "with no reference to goods or services and sent as a gift" seems to imply that the payment is probably not a gift, but OP is wondering if it isn't labelled as payment for goods or services would it be tax free, which of course it wouldn't be if it isn't a gift. What it is labelled as is irrelevant.
    • Pennywise
    • By Pennywise 20th Oct 19, 2:15 PM
    • 12,153 Posts
    • 24,087 Thanks
    Pennywise
    • #5
    • 20th Oct 19, 2:15 PM
    • #5
    • 20th Oct 19, 2:15 PM
    If you receive money via PayPal with no reference to goods or services and sent as a gift is there Tax liability in the UK?
    Originally posted by Bobby_Bouche
    Rather than being cryptic, why not say exactly the circumstances in which you receive this money? With tax, it's all about detail, not generalities.
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