gifts from mothers do you tell the tax man
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waynesplash
Posts: 11 Forumite
Hi there,
my mother made an investment and it paid off, she is 84, and we filled in her self assessment tax returns for the 3 years the investment payed off, and she paid her taxs to the Government. She now has bought me a car, as I was the one who talked her into the investment, its for me, my mother and father, really, but as she bought the car from her bank, its her car, how do I say its my car ??? As she has bought it, does she just say to me here is your car ??? As I have to say whose car it is on getting the insurance. Also, do we have to tell the tax man we have bought a car, and its a gift for me, I say for me, as the car will be drove by me 60% and my father 40% We have a small business, but do not earn much and I am no tax credits, thus do I tell the tax man I had a gift of a car ??? If money I would think maybe, but a car ???
Wayne
my mother made an investment and it paid off, she is 84, and we filled in her self assessment tax returns for the 3 years the investment payed off, and she paid her taxs to the Government. She now has bought me a car, as I was the one who talked her into the investment, its for me, my mother and father, really, but as she bought the car from her bank, its her car, how do I say its my car ??? As she has bought it, does she just say to me here is your car ??? As I have to say whose car it is on getting the insurance. Also, do we have to tell the tax man we have bought a car, and its a gift for me, I say for me, as the car will be drove by me 60% and my father 40% We have a small business, but do not earn much and I am no tax credits, thus do I tell the tax man I had a gift of a car ??? If money I would think maybe, but a car ???
Wayne
0
Comments
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You wouldn't have to tell the tax man if it was money either. There is no tax on gifts in the UK.
However, if both you and your dad are driving it, and as you rightly say the insurance co. want to know who owns it, I suggest a discussion with Mum about what she wants.
Depending on how much the car cost, if your mum dies within the next seven years there may be implications for inheritance tax.Signature removed for peace of mind0 -
She should simply keep a record of the gift along side her will as it will be important information her executors need should she die within 7 years of making the gift.
Bit late know but it sounds like she ended up paying CGT, so if possible she should have disposed of the investment in lots across more than one financial year to take advantage of her annual allowances.0
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