Gift money and tax

I have received a 6 digital pounds cash gift from my parent. Does this attract capital gain tax or any kind of tax to my parent and myself?

Hi,
 

Gifts of cash are not liable to income tax. However, you may have to pay tax if the gifted money generates interest or dividends. See link: Tax on savings interest    and Tax on dividends    .  Thank you.

Hi, Thanks for the reply. So, are the gifts of cash also not liable to capital gain tax for both me and my parents? Secondly, the cash are held in a bank account in the Isle of Man. Is the interest generated considered as UK or foreign interest?

Hi, my uncle, a British citizen, who is a former US resident but now a UK resident and tax payer would like to gift $100,000 to his son in the US (who is a US resident but UK citizen) from his US bank account. This would be for purchase of a UK property. Are there any inheritance tax implications in doing this? Would this gift fall under US or UK tax laws?

Hi mancplau,

Cash gifts are not liable to Capital Gains Tax. Any interest arising from the cash gift is taxable.  

If the interest arises outside the United Kingdom, from a cash gift, then this would be classed as foreign interest.

Thank you.

Hi Annabel, 

There are no Income Tax implications on the giving or receipt of cash gifts, but you may wish to speak to Inheritance Tax team regarding any 
Inheritance Tax implications,

You can find the contact details here: 

How Inheritance Tax works: thresholds, rules and allowances

Thank you. 







 

Hi, So, as a gift receiver, the cash gift for me is not liable to income tax and capital gain tax. Is it also not liable to income tax and capital gain tax for my parents who gave me the cash gift? If so, am I and are my parents, all no need to mention the cash gift at the self-assessment?

Hi,
 

There are no income tax implications on the receipt of a cash gift unless the income generates interest or dividends. These would then potentially be subject to tax.  Further guidance can be found here : Tax on savings interest   and  : Tax on dividends   . There is no need to report the gift on the self assessment   . Thank you.

Hi, Thanks for your explanations. I am asking this, that is because at here: https://www.gov.uk/check-if-you-need-tax-return/y/no/no/less-than-50-000/no/no/none-of-these it says: 'You usually have to pay Capital Gains Tax when you sell or give away: most personal possessions worth £6,000 or more (apart from your car) any other assets, such as shares or a holiday home' It seems something relevant to my parents who gave me the cash gift. Are they also no need to pay capital gain tax for it and no need to mention it at the self-assessment?

Hi mancplau, 

There are no Income Tax implications on the receipt of a cash gift, unless the income generates interest or dividends.

These would then potentially be subject to tax.

You can find guidance here:

Tax on savings interest

Tax on dividends

Thank you. 

 

Hi, At the Capital Gains Tax summary notes here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1063020/sa108-Notes-2022.pdf It states 'Fill in the ‘Capital Gains Tax summary’ pages if: you sold or disposed of chargeable assets which were worth more than £49,200'. My mother has give me money as cash gift, in both GBP and in foreign currency as well, which are much more larger £49,200 than. At the same time, I had also transferred money back to her, it is also a large amount in foreign currency, but lesser than £49,200. Actually, those cash gift and transactions are only for our family expenditure purpose. I would ask to ask: 1 For my mother, is she need to mention it at the form SA108? If yes, is it on the Box 14-22? 2 For me. am I need to mention it at the form SA108? If yes, is it on the Box 14-22?

Hi,
 

There are no income tax implications on the receipt of a cash gift unless the income generates interest or dividends. These would then potentially be subject to tax.  Further guidance can be found here : Tax on savings interest   and  : Tax on dividends  . There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications : How Inheritance Tax works: thresholds, rules and allowances   and   : Inheritance Tax: general enquiries   .  Thank you.

Hello, My best friend lives and works in abroad where he sold the company he founded, and he wants to send me a £300,000 cash gift. Do I have to pay any sort of tax on this? Do I need to declare it? Or nothing needs to be done? Thanks

Hi,

There are no Income Tax implications on the 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 dividends

Thank you.

If I make a cash gift of £200,000 next tax year to my adult son, do I need to declare it on my tax return? And do I need to pay capital gains tax? I understand that my son won’t need to pay income tax on receiving the gift. He only needs to pay tax if he earns interest on the money. Thank you.

Hi,

There are no Income Tax implications regarding gifts of cash to children.

There may however be Inheritance Tax implications. You can see more information here:                                                           

How Inheritance Tax works: thresholds, rules and allowances

Thank you.

Hi, My wife and I are living together in UK My wife is a full time house wife without working/ salary. An I correct that when I gift her cash from my saving then she is not liable to pay income/ capital gain tax on whatever amount i gift her? (Except for the future interest generated from it) Any exceptional situation? Thanks

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. You can see further guidance here:

Tax on savings interest

Tax on dividends

Thank you. 

Hi - this thread may be completely wrong. You can only give gifts tax-free up to a £3,000 HMRC annual allowance according to multiple sources. HMRC allows you to roll that over ONCE in your lift, so in one year you could up that to £6,000 by using 2 years' worth of allowances. Except for your spouse, this means that over and above £3k or £6k, tax does apply. It's got nothing to do with interest or dividends. It's gift tax.

Hello, Our parents are living in oversea, and they would like to gift us 10k pounds via online banking, do we need to pay any capital gains tax on this please? Thank you.