cash gift

Dear HMRC, My mother and I both are UK tax residents. My mother gave me £500,000 as a gift. Should I report this to HMRC? Thank you.

Yes 100 % get professional advise GOV Guidance is as follows https://www.gov.uk/inheritance-tax/gifts Taper relief only applies if the total value of gifts made in the 7 years before you die is over the £325,000 tax-free threshold. The 7 year rule No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule. If you die within 7 years of giving a gift and there’s Inheritance Tax to pay on it, the amount of tax due after your death depends on when you gave it. Gifts given in the 3 years before your death are taxed at 40%. Gifts given 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’. Taper relief only applies if the total value of gifts made in the 7 years before you die is over the £325,000 tax-free threshold. Taper relief Years between gift and death Rate of tax on the gift 3 to 4 years 32% 4 to 5 years 24% 5 to 6 years 16% 6 to 7 years 8% 7 or more 0%

Hi Raymond Choi

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

Thank you

Dear HMRC I am a UK tax resident, non-domiciled. I am employed by an overseas (Hong Kong) company and adopting remittance basis for self assessment. During the tax year, I did not remit any money earned from the employment to the UK. My father, aged over 70, is also a UK tax resident. He is retired and has no income. I plan to support his daily expenses from the income I have earned from my employment in Hong Kong. Would you please advise the tax implication, if any, to my father or myself? Do I need to declare any taxable income? Thanks in advance.

Hi 911GTR,
As you are supporting him from your Hong Kong funds, this will be seen as a remittance and be taxable.
Please see this guidance:
Remittance basis 2023 (HS264)
Thank you. 

Dear HMRC My wife and I were planning to transfer funds (for the purposes of buying a property) to our daughter, who is a resident of the UK. We live overseas (Singapore). We are all UK nationals; while my wife and I are non tax residents, our daughter is a tax resident. 1. Will the gift transfer be taxable for her; or for us? 2. Is there an upper limit on how much can be transferred to my daughter? 3. Is the allowance per recipient or it is per transferor? 4. Will it be counted towards inheritance transfer? Many thanks in advance

Hi,

There are no Income 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 I am thinking about giving my daughter a cash gift over 3k as a deposit towards her first property. The property would also be mortgaged. If in future she then sells this property to purchase another property to live in what needs to be considered on equity part and any profit made on sale? I am aware of the 7 year gift taper. Would there be any capital gains forms to fill out? What about IHT? Is there anything else to think about? Thanks

Hi Elle
 Any future profit would have no bearing on your initial 3k gift and no IHT would be due as you are allowed to give 3k pe year without it being part of the estate.
Thank you. 

Hi Thanks for your message. What if the gift is over £3k say £20k to purchase first property is there a threshold? Thanks

Hi YorkshireWater gave me a £40 cheque under their Customer Charter. How do I report this £40 in Self Assessment? Thank you!

Hi,

If it is over £3000, then it would form part of the estate in the UK if the person who gave the gift was to pass away within 7 years.

Thank you.

Hi Sikwu,
This depends on whether you had to actually do anything in order to receive the funds - please refer to:-
Savings and Investment Manual SAIM8020 - Annual payments: meaning of annual payment
Thank you.

Hi HMRC, Do I need to declare or inform HMRC if I receive a cash gift exceeding £3,000 from my father? I understand the inheritance tax and the 7 year rule. But how much would he be allowed to send me without tax implications? Also, if I send any money to my father, would the same rules apply? I have noticed previous replies but not sure if the rules have changed in the new tax year. Thank you

Hi Abdelaziz,
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. 

 

Good Afternoon , my wife and I want to pay off our daughter’s mortgage. We are aware of the 7 year rule. If the money, say £64K is payed from a joint account will it be best to gift it as two £32K or one £64K. The question is if I or my wife die within 7 years does the rule only apply to the individuals death and the £32K of that person. w.g. If I die my £32K would be in play while my wife’s will remain untouched. Thanks in advance

Hi,
HMRC cannot advise you  on how to make the payment as that is your decision. with regards to the 7 year rule, as its a joint account it would be 32k.
Thankyou.

Hi, I am thinking of selling my property and sharing the proceeds to my 4 children. I expect the sum per child to be £75.000? What tax will I or they be liable to? The total sum before the share will be around £300.000 Many thanks

Hi,
If the property that is being sold is your main residence then no tax is due on this and there is no tax to pay on the gift.
Thank you.

Hi there, I am a retired 70-year-old man, UK resident. I fill in a self-assessment tax return for some small rental income every year. I am now a writer without charging or receiving any personal remunerations for ANY work or service I provide, but I do receive from time to time a voluntary Love Gift or a Gesture of Goodwill from people who are in appreciation of me sharing my writings. While I have been including these Love Gifts, cash (Paypal) money (nearly totally from overseas) in my yearly tax returns never yet going over my £12,560 within that no-tax thresh-hold. My question is; as I have not heard of this Free Love Gift as a non-Taxable Status before, if my Love Gifts take me over my thresh-hold as aforementioned, do I have the declare these sorts of small cash gifts at all? The point is, these receipts are therefore, not for personal use, but I do turn them back into the Community as well as expanding the public arena for which I wish to share. So NONE of these receipts are for personal use or placed into any Bank, Savings accounts, or any other investment location, which may, earn dividends or interest. In short, these Gifts are never of any amounts that see them hover much over the red/Black line of credit status. Can someone please shed some specific Light on my Tax Position in relation to what I have shared above? Many Thanks Melek