Inheritance or Gift?

Hi, my mother-in-law died in 2022 and it is only now that some money has been released to my Father-in-law following probate. Apparently there are a few more monetary items still to be sorted before all is complete. My Father-in-Law now wants to give £40k to each of his 4 children as their inheritance from their mother, but the 2 living in the UK were wondering whether there would be tax due on this amount. Can you help?

Hi
There are generally no Income Tax implications on the giving of or receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. Further guidance can be found here Tax on savings interest: Tax on savings interest
Tax on dividends: Tax on dividends
Inheritance Tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died. 
The rules on giving gifts can be found here: How Inheritance Tax works: thresholds, rules and allowances
You may also want to review the guidance at: How Inheritance Tax works: thresholds, rules and allowances