If someone gave me £1,000,000 (not inheritence) do I have to declare it and pay tax on it?

Answer 1

Yes and yes

Answer 2

It depends on where it came from. If it came from family then no (unless the gofter dies within 7 years in which case you will be subject to inheritance tax). If it came from elsewhere then you have to declare it. You are allowed tax relief on gifts to a certain amount - don't know what the amount is but it won't be more than a few thoursand pounds and the Inland Revenue aren't going to watse time on small gifts, However, for a million quid, you will have to declare.

Answer 3

Capital Gains Tax: No and Yes - depending on what you do with the money.

HM Revenues and Customs example:
Your sister gave you a garage worth £5,000.
You did not pay anything for it.
Later, you sell the garage for £8,000.
You are treated as making a gain of £3,000 (£8,000 less £5,000)

Your case example:
1 million people give you 1 pound coin worth £1.
You did not pay anything for each coin.
Later, you sell each coin for £1.
You are treated as making a gain of £0 (£1million less £1million)

If you invested the money or put it into a bank account, then it would gain interest so technically then it would be taxable as you are gaining money from it.

Still, i would get advice from a qualified tax consultant before trying it :).

Thanks

Answer 4

Very complex,talk to a finincial advisor.

Answer 5

Yes.

Answer 6

If you keep it in an off shore account, no

Answer 7

no, you can give half to me and we wont tell anyone