ChatterBank1 min ago
Tax on Gifts
11 Answers
How much money can you give to someone without them having to pay tax on it? does anyone know? can you help me please?
Answers
1 to 11 of 11
There is NO tax on the gift. Repeat NO tax. As bedknobs says there is NO gift tax in the UK.
If you invest the gift then you pay tax on the interest, just as you would if you invested any other money from any source.
If you invest the gift then you pay tax on the interest, just as you would if you invested any other money from any source.
10:40 Mon 21st Feb 2011
This would be a gift from a sister. Would the £3k stand for every year? She is very elderly, if she dies during the year of gift how do i stand then?
I understand from my bank that if I put money from an ISA into my account I have to pay tax on any interest it might make but not on the money originally from the ISA. Does gift money have the same clause on it?
Should also add that it is my partner's sister and she would be giving money to him but what would be the situation if she also gives me some money. we are not married so i am not really related to either of them. Further help please.
I understand from my bank that if I put money from an ISA into my account I have to pay tax on any interest it might make but not on the money originally from the ISA. Does gift money have the same clause on it?
Should also add that it is my partner's sister and she would be giving money to him but what would be the situation if she also gives me some money. we are not married so i am not really related to either of them. Further help please.
There is NO tax on the gift. Repeat NO tax. As bedknobs says there is NO gift tax in the UK.
If you invest the gift then you pay tax on the interest, just as you would if you invested any other money from any source.
Where the £3K per annum comes in is inheritance tax. If the person giving the money dies within 7 years, then their estate is liable to inheritance tax on any gifts they make above £3K a year (and a few other exemptions) - but only if their entire estate, including the gifts, is above the inheritance tax threshold.
If you invest the gift then you pay tax on the interest, just as you would if you invested any other money from any source.
Where the £3K per annum comes in is inheritance tax. If the person giving the money dies within 7 years, then their estate is liable to inheritance tax on any gifts they make above £3K a year (and a few other exemptions) - but only if their entire estate, including the gifts, is above the inheritance tax threshold.
As said by others previously, there is no tax to pay on any amount of money given away unless the donor dies within seven years of making the gift. Having said that, even if the donor dies within seven years of making the gift, if their total estate is below the value for inheritance tax(IHT), currently £325K, including the money previously given away, there will be no tax to pay. Even if there is IHT to pay it will come out of the estate of the donor not the recipient.
1 to 11 of 11
