Gift money and tax

Hi Skinny,
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. 

Hi, There is another related question. I received monthly interest (HKD) from my HK bank account. I need to fill in the self assessment tax return for this income in GBP. There are two ways to calculate the equilvalent GBP by: 1. total twelve month interest x Average foreign exchange rates (FX) are published on 31st March 2024 2. Apr 2023 HKD interest x Apr FX rate + May 2023 HKD interest x May FX rate + Jun 2023 HKD interest x Jun FX rate..... Which method should I use to calculate the amount in filling the corresponding tax return form? Thank you.

Hi Skinny,

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.
For your convenience, there are exchange rates at:

The National Archives: Exchange rates from HMRC in CSV and XML format

For older rates at:

The National Archives: Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing, such as a recognised stock exchange.

Thank you.

Hi my Girlfriend want to give me a gift of 65000 pounds for help me buy a flat. Do I have to pay tax for the amount? Thanks

I am a UK citizen living abroad. If I decide to give my best friend (UK resident) monthly allowance to help her with living expenses, does she have to pay any tax on it? What are the limits for this kind of payment?

Hi Konstantin,
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.
Rules on giving gifts
Inheritance Tax: general enquiries
You may also want to review the guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you. 

Hi askingforafriend,
No, this would be seen as a cash gift and is not taxable.
Thank you. 

Hello, My brother-in-law wants to help me towards flat purchase and to gift me around £200,000 . Is it taxable? thank you

I have purchased an insurance policy to cover my care home fees for perpetuity, therefore my monthly expenses are now negligible. Can I use my pension to gift money to my children without having to pay inheritance tax on these amounts?

Hi Bedbear66,
Please refer to guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you 

Hi MoulinRouge,
A Self Assessment is not due for gifted money as this is not taxable. 
Thank you. 

Hello. I've been gifted £100k cash from my parents. Im 40% tax payer. If I put that 100k on savings account and it will generate interest, what taxes will I have to pay on interest 40% as on normal earnings 40% + capital gains tax/other taxes as its money generated from interest on gifted cash? Thanks Thanks

Hi Ziomboj,
Yu only need to declare the interest received and this will be taxed as income.
Thank you. 

if i ear interest on gifted money less than the annual minimum (eg if it’s only 1,500£ of interests), do i still have to fill out the tax return indicating the amount?

Hi,
No, but you still need to declare the interest received as this is over the personal savings allowance. You can send in a letter to:
HMRC
PAYE & Self Assessment,
BX9 1AS
Alternatively, you can contact our Income Tax team.
Income Tax: general enquiries
Thank you.

Hi , My Parents are retired and live in the Republic of Ireland , they have recently sold thier primary home and wish to give a large protected gift of 200,000 pounds each to me , living in Bath and My Sister living in Leeds. The intent of these gifts is to be deposits for a property each in the UK where we both work and are tax resident. Are there any tax implations of a gift of this sum or a gift of this sum being used to aquire property in the UK

 Hi,
There are no Income Tax implications on the giving 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 Contents
Tax on dividends
You may also wish to consider any inheritance tax implications. 
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
Thank you.

Hi, I have received a five digit cash gift from my parents which came from abroad, I have transferred the funds to my Bank's regular savings account (not an ISA), which will generate interest! Do I have to pay taxes on this generated interest? If so, is there anywhere where I can find the information with the guidelines for that particular case? As well as that, is there any action to be taken by me on this, or does this tax come automatically deduced from my account gains? Many 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 and Tax on dividends ).