cash gift

Hi, My Grandad has offered to gift me £15,000 via bank transfer to relieve me of my debts from loans, credit cards and overdue bills. He’s in his 80s but is concerned that one or both of us would be taxed. I have struggled to find a solid answer to if we would be taxed on this amount or not as the money would not create any interest, it would be purely be to pay off bills.

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 seen here:
Tax on savings interest
Tax on dividends
You may also wish to consider any Inheritance Tax implications. The rules on giving gifts can be found here:
Rules on giving gifts
You may also want to review the guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Thank you.

Dear HMRC, my partner and I are splitting up and selling our home. Only my partner's name is on the mortgage but he wants to gift me the proceeds of the sale 535K, to purchase another property for me and our 2 sons. He will not live with us. Aside from the 7 year inheritance tax rule are there any other tax implications on a gift of this size? Will I have to pay any tax as the recipient? Thank you

Hi ,
 

You would not have to pay any tax as the recipient.  If your partner is the only person named on the title deeds at the time of the property disposal, then your partner is the beneficial owner of the property for capital gains purposes.  The names on a mortgage do not count.  If your partner is the beneficial and legal owner of the property at the time of disposal, then your partner would be the person who may have a capital gains liability.  Private residence relief woud apply if this was your partners main residence.  Your partner should review the guidance at : HS283 Private Residence Relief (2024) .  If you partner gives you a cash payment after the propety disposal, then there is no tax implications on the cash gift for either of you, unless you generate interest out of the cash gift.  The interest would be taxable.  If you are married or in a civil partnership, please also have a look at : HS281 Capital Gains Tax civil partners and spouses (2024)  . Thank you .

Hello My mother is thinking of selling her home She owns it as tenants in common with her 2 brothers. They each own different percentages of the house If they sell will my mum be able to qualify for full private residence relief on her share so she doesnt pay any capital gains tax as she has lived in the house all the time as her main home Thank you very much

Thank you, that's great news. Yes, my partner's name is on the title deeds and it was our main residence for 28 years. Reading the guidelines I can see that he qualifies for Private Residence Relief.

I own a house (our primary and only residence) worth £1m. It is jointly owned with my wife. We are looking to sell the house, downsize and give our 2 children £250,000 each. Is this gift allowed under IHT rules? We are early 50s and expect to live longer than 7 years.

Hi richard b,
You can see guidance on giving gifts here:
Rules on giving gifts
If, after reading the guidance, you still have queries, you will need to contact our Inheritance Tax team for advice.
Inheritance Tax: general enquiries 
Thank you.

Hi Andy1* Thomas,
You can use HMRCs tool to find out if you are eligible for Private Residence Relief here:
Work out tax relief when you sell your home 
Thank you

Hi thanks I've used the tool but not sure if it applies to property that's owned as tenants in common Thank you

Hi Andy1*,
If it is her only and main residence and has been for the whole period of ownership, no CGT will be due on her share.
Thank you.

Hello, my parents live in Greece and would like to gift me circa £150.000 to use as a deposit for a future house purchase in the UK. I understand since it’s a gift, I don’t have to pay tax on the amount gifted . Can you advise please what is needed to prove it’s a gift?

Hi Dimitra,
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
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 Rules on giving gifts
You may also want to review the guidance at: How Inheritance Tax works: thresholds, rules and allowances Overview 
Thank you.