2007-05-31 04:16:08 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
none
gifts are non taxable
only problem would be if the person dies before the end of 7 years then you could have to pay death duties on it (this would depend on the amount and the donor's tax position)
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2007-05-31 04:19:49 · answer #1 · answered by Anonymous · 1⤊ 2⤋
I don't know about the U.K., but in the U.S., if someone gives you money as a gift, there are no tax implications to you at all. You don't even have to report it as income. (However, the giver may have to pay a "gift tax" on it if it is over a certain amount). Just make sure it is really being given to you as a gift, for some other reasons -- i.e. for services you did or as a trade, etc. If the giver expects something in return for the money, it is not a gift, and then there would be tax consequences to you.
2007-05-31 11:24:58 · answer #2 · answered by Ironman 2 · 1⤊ 3⤋
The value of the property you receive by gift is excludable from gross income. No worries. The person(s) making the gift may have to file a gift tax return if it's over a certain limit (12,000 for 2007 I think--- can't quite remember). For instance, if your father by himself gifted you 13,000 dollars then he would have to file a gift tax return and pay tax on the excess 1,000 dollars. You can get around this because each of your parents (if they are married to each other) can gift you 6,500. That means they are both under the limit and hence, no gift tax return. Good luck
2007-05-31 11:31:09 · answer #3 · answered by michael s 2 · 0⤊ 2⤋
If you tell the Taxman, it might get counted as 'Income' (if they decide it's given to you in exchange for some sort of work/benefit to the other person) and you pay Tax on it...
As I recall Interest on gifts to your children or grandchildren is counted as 'yours' if it exceeds some ammount per year.
Inheritance Tax is paid by the estate of the person who dies so that's also Tax free to you - as are Lottery and Gambling winnings.
If some nice Nigerian asks you to Bank a cheque for him, and keep 20% yourself and send him the rest, don't worry about Tax because you won't actually end up with any money (the Cheque clears in UK, you send the 80%, and then, maybe months later, his mate in the Nigerian Bank "discovers" the Cheque is a "fake" and reverses the original transaction).
2007-05-31 11:23:58 · answer #4 · answered by Steve B 7 · 0⤊ 2⤋
First answerer is coreect - but its the donor's estate which would have to pay the IHT on the gift, not you. If the gift was made out of income, however, then there would be no IHT on the donor.
Some of the other answers on here are shamefully inaccurate. As you have asked this in UK, I assume thats where you are.
2007-05-31 15:02:29 · answer #5 · answered by fengirl2 7 · 3⤊ 1⤋
If they are giving you it from their personal finances then none because they would have already paid tax on it.
2007-05-31 11:19:54 · answer #6 · answered by agius1520 6 · 0⤊ 0⤋